While most plants were still operating at medium to high capacity, fewer contacts than in the previous survey reported high levels of capacity utilization. Manufacturing materials remained generally available, but lead times increased for steel and some other metals. Concerns about future material availability remained low. Managers were much more satisfied with inventories, and most plan to continue trimming stock levels in coming months. Housing Building activity improved following several months of decline, but was flat compared with a year ago.
Builders expect a typical seasonal downturn in activity heading into the winter months.
Material availability problems eased somewhat from previous surveys, but gypsum board and insulation remained scarce in some areas. Home sales declined, and inventories of unsold homes built up in some rural areas. Mortgage demand continued to fall as refinancing activity has slowed substantially with rises in interest rates. Banking Bankers report that loans increased and deposits held steady last month, raising loan-deposit ratios. Demand increased for commercial and industrial loans, commercial real estate loans, and consumer loans.