Dallas San Francisco Full report The Second District's economy has shown few, if any, signs of slowing since the last report, but price pressures have diminished. Retailers report that sales recovered somewhat in September, following a sluggish summer, and continued to improve in early October, running on or close to plan. Almost all retail contacts say that selling prices have declined a bit.
Housing markets remain strong, despite recent volatility in the financial markets.
Regional manufacturers report that business conditions remain favorable, while commodity price pressures have abated. Finally, bankers report little change in loan demand, tightening credit standards on commercial loans, and falling delinquency rates. Consumer Spending Retail sales, which had been lackluster for most of the summer, have picked up somewhat in recent weeks. Apparel sales, though still sluggish in a few cases, were said to have improved since the last report. Two contacts indicate that low import prices have prompted them to carry an increasing share of imported merchandise, especially apparel.