Bank lending has been flat as increases in consumer credit have been offset by decreases in real estate lending and business loan volume has been level. Residential and nonresidential construction have been easing recently, but real estate agents indicated that sales of existing homes have been steady. Employment continued to grow in the region, and firms in nearly all industries have reported difficulty in meeting their needs for workers. Staffing of stores for the Christmas shopping period was described as especially problematic. Looking ahead, business contacts in the District have mixed views, although some step-up in activity is expected overall.
Manufacturers forecast increases in shipments and orders.
Retailers expect sales for the holiday shopping period to exceed last year's level, and auto dealers anticipate an upturn in car and truck sales after the turn of the year. Bankers expect lending to strengthen next year as well. Construction activity may slip further, according to builders, especially for commercial office buildings, but public construction is expected to remain strong. Manufacturing Manufacturing activity in the Third District continued on an upward trend in November. On balance, industrial firms reported increases in shipments and orders during the month.