New York reports that some district lenders and developers have held auctions to pare housing inventories. Prices Several districts report little evidence of increasing inflation. San Francisco reports that wage and price increases continue to slow, and Minneapolis notes that they have remained moderate. Cleveland contacts expect the inflation rate to decline from recent levels. Manufacturing input and output prices are generally stable, although Richmond reports increased raw materials prices.
Districts report declining oil and natural gas prices, but mixed movements in motor fuel prices.
Grain prices are generally falling, while beef, citrus and log prices are showing strength. The majority of districts report weakness in business and consumer loan demand, largely due to the slowdown in the economy and the Persian Gulf. Real estate lending is edging downward in many districts, despite declines in mortgage interest rates. Commercial real estate and construction lending are especially weak. Atlanta reports that many businesses have reduced or delayed planned capital expenditures.