Manufacturers reported a slight decline in demand compared to the prior month. Bankers generally indicated that loan volume outstanding has been level. Some banks have increased business lending in response to a rise in loan requests, but several have reduced their participation in commercial real estate financing. The outlook among firms contacted for this report is for very modest improvement, at best, during the balance of this year and in 1999. Manufacturers anticipate only nominal gains in shipments.
Retailers forecast just slight improvement in sales for the rest of the year.
Bankers expect the growth rate of economic activity in the region to ease and loan demand to slacken accordingly. On a positive note, business contacts expect employment to remain fairly healthy. Manufacturing Reports from Third District manufacturers in October suggested that conditions remain stalled. New orders at area plants were flat, on balance, and order backlogs declined. However, more firms reported increases in shipments than decreases, and inventories have fallen overall.