Reports from New York and St. Louis suggest that much of the investment may be for mandatory pollution control equipment rather than for projects which will increase productive capacity, Many investment projects in the Atlanta District are being delayed, largely as a result of shortages. Retail sales generally continue at high levels, although some of the Federal Reserve Banks indicate a slowing in consumer demand. This was noted particularly for automobiles and consumer durables. Employment generally continues at high levels, with many Districts reporting labor shortages. The agricultural situation is good with high crop yields and large farm incomes in prospect.
Many Districts report that crop harvesting is progressing rapidly.
Livestock production in the Dallas District is slightly higher than last year, and the Florida citrus crop is the second largest on record. Chicago reports that, in the last year, value of farmland has experienced the largest increase in 20 years. Construction activity is down in many areas, but commercial construction has held up better than residential. A number of the Federal Reserve Banks reported that construction is being retarded by material shortages, late deliveries and uncertainties stemming from rapid price changes. Interest rates have in some cases declined in recent weeks, reflecting a decrease in bank loan demand, especially for commercial loans.