Reports of price increases for goods are mixed. San Francisco reports price increases in the 3 to 5 percent range, but Boston reports that materials prices for oil-based products have increased as much as 8 percent. Richmond reports steady finished good prices, even for products using oil-based inputs. Several districts report expectations of discounting by retailers this Christmas season in the face of weak demand. Finance and Credit Activity in the financial sector has been generally softer.
Several districts report a decline in consumer and business loan demand.
Almost all districts also report some tightening by banks of business loan terms, particularly for construction and land development. Reports of banks' willingness to lend are mixed, with New York reporting that banks are somewhat less willing to lend but with St. Louis reporting no change. The agricultural sector is reported to have been strong across the country. Crop yields are generally reported to have been fairly good. Partly as a result of these high yields, crop prices have fallen recently and reports are mixed on farmers' incomes.