Petrochemical inventories seem to be stabilizing after building for much of the past quarter. Manufacturers, including auto producers, are again placing orders. Respondents cited weak packaging demand and a Chinese embargo on chemical products as continuing problems. Profits in the industry peaked last April but continue to be relatively strong. The demand for high-quality industrial space remains high, with occupancy near 95 percent.
Retail expansion continues but recently has slowed.
The rest of the market is flat, with a few more concessions being made to prospective office or apartment tenants than earlier in the year. New home sales have defied the normal autumn slowdown, as lower mortgage rates and strong job growth continue to tempt buyers. Sales for the past three months are up 21 percent over 1994 levels. The story is similar for existing homes. Inventories of both new and existing homes are down sharply, and new starts should increase in the months ahead.