Volumes last year were quite good, aided by burgeoning catalog spending. Area freight companies note that exports continue to wane, while imports have risen further. Shippers have seen some loss of business due to decreased steel production. Construction Residential and commercial construction remained unusually strong through the end of 1998, helped in part by mild weather. Wages seem to be holding steady in commercial construction, although labor shortages and upward wage pressure still exist in some residential construction trades.
Residential builders note rising land prices, while materials costs have steadied recently.
The consensus among District builders is that building activity will remain strong in 1999. Industrial Activity Manufacturing activity has varied widely by industry. Steel producers report that orders, which had fallen sharply since midsummer, appear to have leveled off. Demand remains quite strong, but foreign competition remains fierce and prices are under strong downward pressure. Like agricultural commodity prices, industrial commodity prices are still falling in a number of categories.