With a downturn developing in oil and gas development, defense procurement becomes the principal expanding sector. Finished goods inventories are too high in some sectors, but most purchased materials are under close control. Capital spending plans generally are being reduced. Auto and appliance sales remain weak. Extreme caution holds back decisions on consumption and investment, especially on major items.
Housing remains severely depressed everywhere, but some districts report incipient improvement.
Office building construction is still vigorous in some large centers. Crop prices remain low partly because of large harvests projected for this year, but livestock prices have increased. Several districts report increased bankruptcies and more problem credits for consumers, business, and agriculture. All of the district reports follow, in general, the outline described above, but there are noticeable differences. The Chicago and Cleveland districts with their emphasis on hard goods continue to present the blackest pictures.