On balance this month's comments indicate a further slowing in overall economic activity and more widespread pessimism regarding the near-term outlook.
Residential construction remains in a depressed state throughout most of the nation.
The situation in the housing sector is causing a marked decline in consumer outlays for durables related to housing, and aggregate real consumer spending appears to be weakening further. Business capital spending continues relatively strong although there are further reports of delays and cutbacks of previously scheduled outlays. The manufacturing sector presents a mixed picture with reduced demand pressure and fewer shortages in some industries, particularly those industries serving primarily the housing and consumer durables sectors, but continued tightness and shortages elsewhere. Several Districts report that the improved supply-demand balance in some industries has reduced the upward pressure on prices for certain raw materials and intermediate industrial goods, but no precipitous softening of industrial prices is yet evident. Adverse weather conditions are apparently restricting crop yields and hampering the growth of farm income in the central portion of the country, and conditions in the livestock industry have deteriorated further.