Capital goods industries remain the most buoyant. But even here more signs of cutbacks and postponements were reported. Cleveland reports machine tool orders still are strong, but a number of spending programs for 1975 have been cut back. Atlanta, Chicago, and Kansas City report similar cut backs. Capital equipment orders in the Chicago District have fallen off recently, and stretch-outs of orders have also become more common.
Orders remain strong for steel and other types of capital goods, however.
There is growing evidence of a general weakening in demand for most consumer items. Auto sales are uniformly poor in all Districts. Most big-ticket items are not selling well. Only Minneapolis reports any strength in higher-priced consumer goods. Reports from San Francisco, Dallas, Boston, New York, Atlanta, and Philadelphia suggest that price cutting and sales campaigns by retailers and discount shopping by consumers are now more commonly practiced.