Despite weaknesses, total activity is still at or near record levels and job markets remain surprisingly strong. Motor fuel supplies have improved, but sectors affected by shortages are not returning to normal. Inflation continues unabated. Credit is tight, but generally available. Agriculture is prosperous, but transport problems are hampering movements of grain.
Pessimism is widespread.
The main causes of pessimism are continued inflation and. Richmond's survey reveals declines in shipments, new orders, and. Most districts reported that gasoline and diesel shortages had eased significantly in the past month, because of both increased supplies and conservation induced by sharply higher prices and concern over availability. The main direct adverse impact of fuel shortages has been on low-mileage vehicles and tourism. A number of' districts, notably Atlanta and Dallas, remarked that tourism had recovered significantly as fuel supplies improved, but summer tourism certainly will be off substantially nationwide except for some favorably located areas.