Many plants that were operating at high levels of capacity utilization in October and November reported a dropoff to more moderate levels in December. Manufacturing materials remained generally available, although lead times for steel and steel products edged up. Many firms reduced their inventories in December and expect to continue trimming in coming months. Potential Y2K-related supply disruptions did not appear to concern most manufacturers. Housing After accounting for normal seasonal variation, housing starts held steady in December.
Most builders also expect activity to remain stable over the next few months.
Material availability continued to improve, although rationing of gypsum wallboard persisted in some areas. Home sales slowed in most of the district, but inventories of unsold homes remained at comfortable levels. Mortgage demand declined throughout the district in December, particularly for home refinancings. Banking Bankers reported that both loans and deposits increased somewhat last month, leaving loan-deposit ratios little changed. Demand fell for home mortgage loans but rose for commercial and industrial loans and commercial real estate loans.