1979 Reports from the Twelve District Banks this month indicate continued strength in the economy as many parts of the nation recover from a severe winter. The only exception is Atlanta which reports mixed activity in the Southeast. Strong loan demand and overall expansion in manufacturing continue to be major sources of strength to the economy. And, although residential construction is suffering in some states, nonresidential construction is generally doing well.
Retail sales appear to be expanding with a few exceptions.
Crop prospects are reported to be favorable with the exception of Southern California. March retail sales volume is reported to be growing in all Districts except Philadelphia, Richmond, and Atlanta. Minneapolis reports some weather-related constraint in consumer spending. Retail inventories are reported to be in good shape, except in Kansas City where merchants are expressing concern over some unplanned stock accumulation. One notable exception to the sluggishness of big- ticket items is auto sales.