Backlogs in this industry remain at historical highs. Auto-related production is also advancing at a pace that is rated good or higher. However, a flattening in construction equipment orders has been observed and agricultural equipment manufacturing has seen a sharp fall-off in orders and production. International freight companies report a huge backlog of goods waiting to be shipped out of Asia. Moreover, shipping companies note little demand from abroad, and the shipment of empty containers back to Asia has prompted surcharges on some Asian shipments.
Similar accounts come from the domestic transportation industry.
A contact in the railroad industry reported a recent increase in container traffic traveling by rail and greater numbers of empty containers moving west. Moreover, national retailers indicate that spending in the Fourth District has exceeded U.S. averages. Sales of seasonal items, electronics, housewares, and furniture have been especially improved between months. Auto dealers say that September sales of new vehicles were up from August and remained at or above their September 1997 pace. However, special dealer incentives may be contributing to recent sales strength.