Auto sales have edged down. Bank lending to businesses and consumers increased modestly, but residential mortgage lending declined. Real estate markets remain tight, and home prices and commercial rents have been rising. Although actual building activity remains fairly steady, construction contracting has eased. The consensus in the Third District business community is that business activity will continue to move up.
Manufacturers expect growth to increase slightly.
Retailers look for somewhat better growth in sales this fall. Auto dealers expect the current downtrend in sales to level off at a pace somewhat below the rate set in 1999 and the first half of this year. Bankers expect continuing modest growth in lending to businesses and consumers, and they expect residential mortgage lending to remain steady. Although some growth in commercial and residential construction is anticipated in parts of the region, overall building activity is expected to be nearly level through the rest of the year. Manufacturing Manufacturers in the Third District were posting gains in orders and shipments, on balance, in early September.