San Francisco reports homebuilding picking up slowly while in the New York and Chicago Districts there is no revival in sight. Mortgage rates have drifted down in some areas, but so far without effect. Commercial construction is generally stronger than residential building, but varies considerably from District to District. Most Districts remarking on commercial building find it slowing somewhat or being sustained only by projects already in progress. Dallas reports a high level of activity, however, and Atlanta notes an upturn in permits in early August.
District reports on agriculture are bleak.
Farmers are generally faced with high and rising production costs and the prospects of falling crop prices. Weather conditions have been good to excellent and forecasts call for bumper crops of grains and soybeans, which along with large inventories and weakening export demand are widely expected to depress prices significantly further as harvests proceed. The livestock sector is somewhat stronger as feed prices continue soft and smaller hog and cattle supplies lend support to meat prices. Continuing deterioration of price to cost ratios is depressing farmland prices and eroding the equity position of many farmers. Minneapolis reports storage facilities already near capacity and Kansas City sees the possibility of a shortage later.