In several Districts sales of furniture, appliances, and gasoline consuming lines are sluggish. New York terms the softening in sales of recreational vehicles remarkable. Automobile sales, while generally weak, are being hampered in several Districts by low inventories of small cars. On the other hand, retail sales are described as healthy by Boston, strong by Dallas, and booming by San Francisco. Construction activity was mentioned by only a few Districts but those reports are basically consistent.
Residential construction is down from last year, but only Chicago reports a significant decline.
Strength in nonresidential activity seems to be more than offsetting weakness in residential building. Kansas City finds housing starts down from 1978 but still good. Atlanta reports thin inventories of housing and existing home sales holding up well. Loan demand, particularly of businesses, appears to be strong throughout most of the nation. Boston terms commercial loans exceptionally strong across all segments of the economy.