This is due to the reduced shipments of domestic manufacturers, particularly steel. High petroleum prices have helped narrow profit margins. Although few firms reported layoffs, some have reduced the schedules of their hourly employees, and none of our contacts is hiring new drivers. Our contacts expect soft conditions to last well into the first quarter of 2001. Consumer Spending Retail contacts reported fairly disappointing sales over the last six weeks and soft sales over Thanksgiving weekend.
Most contacts believe the economy is slowing.
Domestic auto manufacturers that reduced the price of new autos saw steady sales for the last six weeks, while those who did not have suffered declines of up to 15 percent. Despite this, overall auto sales are only slightly lower than last year's record levels. However, inventories are 25 percent higher than desired. Sales of used vehicles were steady during October and November. In spite of high gasoline prices, consumers are still buying light trucks and larger autos.