1979 Current conditions vary considerably among the Districts. General characterizations range from ongoing growth in the Minneapolis District to emerging recession around Boston. Near consensus exists, however, as to pervasive weakness in the automobile and housing sectors.
Strength persists, nonetheless, in some other manufacturing sectors, and non-auto retail sales.
There is also general agreement that inventories, in general, across the economy, pose no immediate problem, although there are underway widespread efforts to pare current stocks and reduce what have become heavy carrying costs. Financial market conditions are tending to depress the growth of loan activity in most districts. Mortgage and automobile lending are generally weak, but business lending continues to expand moderately, at least in most regions. In general, loan demand continues buoyant despite some moderation in its recent growth. Real personal consumption expenditures are being depressed by the dearth of automobile sales, but continue to show resilience in other sectors.