The demand for steel has softened a bit, causing a slight decline in its price. The lower demand is expected to continue until inventory in the steel service centers declines, which could take several months. Rising energy prices have significantly increased the costs of producing steel. High fuel prices and low used truck prices are reportedly responsible for low sales of new trucks. These companies also reported a small decline in the demand for trucking services.
Orders are flat for heavy construction equipment.
Consumer Spending District retailers reported steady sales throughout the summer, although receipts did not match last year's season. Retailers anticipate no change in spending in the next six weeks. There is little evidence that total unit sales were affected by the increase in petroleum prices, although more consumers are choosing smaller cars with better gas mileage. The market for used cars is also strong, and some contacts reported that this was caused by the high price of leased vehicles. Agriculture Most District farmers expect high yields in corn and soybeans this year, with the exception of the northernmost counties, where yields are depressed by late planting, disease, and cloudy August weather.