Labor market tightness has eased in almost every district. Upward wage pressures have generally abated, only to be replaced with energy costs that have risen sharply. Home sales and new construction have remained steady or been picking up in almost all districts. Commercial construction has been more uneven across districts. Lower mortgage rates have spurred a resurgence of refinancing, which has helped bolster loan growth recently.
Many districts note, however, that credit standards are tighter now than previously.
The winter wheat crop is generally in good condition, while some delays in spring plantings and the development of other crops have been noted in the Midwest and Plains. The energy sector continues to strengthen. The Boston, Kansas City and San Francisco districts note that sales have been below expectations, while the Atlanta, Chicago and St. Louis districts report that sales have either met or exceeded expectations. The Chicago and New York districts note that sales of seasonal merchandise and apparel have been weak, while the same merchandise has been moving quite well in the Cleveland and Philadelphia districts. The Minneapolis district notes an uptick in demand for used computers lately.