Firms that have experienced price increases for materials have generally still not been able to pass them along to customers. Residential construction permit levels are ahead of last year, with recent upticks in most areas. Total loans outstanding at large District banks rose slightly during the past two months, led by consumer lending. Prices received by District milk producers have risen substantially over the past 12 months, although they are expected to fall somewhat before the end of the year. Manufacturing and Other Business Activity Reports of sales increases, employment gains and plant expansions from contacts around the District far outnumber reports of declines and closures.
Labor markets remain tight in most parts of the District.
Striking McDonnell Douglas machinists voted to accept the company's contract offer in mid-September, allowing the 6,700 striking workers to return to their jobs. The strike lasted slightly more than three months. The strike by Canadian auto workers against General Motors has had little effect on District manufacturers and parts suppliers. Contacts from a paper products company and a poultry processor report plant expansions, resulting in additional employment. A package delivery service has increased the size of its planned expansion, which will dramatically increase local employment and capacity.