Bankers noted increases in lending to businesses but a slight decline in consumer and mortgage lending. Commercial real estate markets were firm, and homebuilders said sales were steady or rising. Sales of existing homes have eased. Firms in several industries have reported rising costs, primarily for basic commodities, and a recent step-up in wage increases. Looking ahead, Third District business contacts in most industries expect continued growth.
Manufacturers forecast rising business activity and they are boosting capital spending.
Auto dealers forecast steady sales at a high rate. Bankers anticipate growth in most loan categories, although at a slower pace than last year. Commercial real estate markets are expected to remain firm, but homebuilders and real estate agents expect rising mortgage interest rates to reduce sales of new and existing homes. Manufacturing Manufacturing activity in the Third District advanced moderately in February. Around one-half of the industrial firms surveyed during the month reported steady business, but more firms reported increases in shipments and orders than decreases.