Unemployment continues to rise both as a consequence of the GM strike and layoffs in other industries. Aerospace employment continues to be low and to be the major depressing influence in such cities as Seattle. There are offsetting forces in other industries which are expanding. In particular, companies in coal mining, railroad-car and large truck parts report growing sales. Capital expenditures show little sign of recovery in prospect.
Most Districts report that few large projects are being planned until there is a stronger recovery.
Current capital expenditures are being stretched out or delayed. Similarly, other costs are subject to close scrutiny. Inventory reductions have not quite ended. There are reports from the Richmond, Chicago, and Philadelphia Districts that indicate there is little sign of a shift toward a building-up of inventories. The construction industry is still maintaining its overall volume but with considerable variation in the pace and type of local activity.