Cost pressures abased and prices of goods and services remain stable. Most retailers reported sales were below expectations in March and recovered only moderately in the first two weeks of April. Retail prices were little changed. Commercial real-estate markets cooled, even though office rents are still up sharply from a year ago. Housing demand in the New York City area softened, though prices are up from last year.
Manufacturers report mixed conditions.
Bankers said there was a strong pickup in demand for home mortgages. Business conditions were mixed. There were some signs that consumer spending strengthened. But manufacturing saw further declines in orders, although shipments were steady. Auto sales improved somewhat.