Manufacturers had built up inventories slightly in case their supplies were disrupted. They plan to reduce them to normal levels in the current quarter. According to reports from stores, there was some stockpiling of bottled water, batteries, and some food items by individuals, but the buildup appeared to have only a very minor effect on normal consumer purchasing patterns. With Y2K concerns out of the way, businesses in a wide range of manufacturing, financial, and service industries say they will step up implementation of computer systems for business applications and Internet activities this year. In the Third District business community, the outlook for the new year is generally positive.
Manufacturers expect orders to rise.
Retailers anticipate a continuing high rate of sales. Auto dealers expect sales in 2000 to remain high but possibly slip a bit from last year's rate. Bankers forecast rising loan demand through the year, although they expect growth to ease from last year's pace. Demand for labor is not expected to slacken except in the construction sector, where a decline has already begun. Manufacturing Third District manufacturers contacted in late December and early January said that shipments were rising but new orders were just holding steady, on balance.