All respondents expect to continue growing sales over the next three months. While most retailers thought current stocks were too large, they do not anticipate major changes in inventories in the coming months. Automobile dealers report mixed results last month, with sales overall moderately lower than a year ago. Sales of sport utility vehicles and light trucks remained strong, while sales of passenger cars were weak. Dealers have trimmed inventories slightly and are generally satisfied with current stock levels.
Respondents expect to increase inventories to match seasonal stronger sales in the coming months.
Manufacturing Manufacturing plants operated at moderately high levels of capacity last month as activity continued to expand. Purchasing managers report that raw materials were generally available and there were no noticeable changes in lead times. Inventories edged down last month, and further reduction is expected in the near future as stocks exceed desired levels. A quarterly survey of district manufacturers indicate that production increased slightly, while shipments and new orders both posted slight declines from December 1997 to January 1998. New orders from exports also declined slightly, reflecting lower export demand from Asia and the effects of a strong dollar.