So far, the recent increase in oil prices has not affected domestic oil and gas drilling. Several district reports of credit markets focus on soft loan demand and some district banks offer examples of tighter credit conditions. Consumer Spending Retail sales patterns vary widely among districts, but growth appears to be ebbing. New York and Philadelphia report absolute declines in dollar volumes from a year earlier. Sales of big ticket items are said to be particularly soft, but clothing sales continue to show strength in some districts.
Several districts mention the negative impacts of higher oil prices.
Despite demand weakness in some districts, most retailers say their inventories are at desired levels. Auto sales are up in Minneapolis and Cleveland but are weak or slowing in Atlanta, St. Louis, Kansas City, and San Francisco. One district says that credit tightening has caused some potential auto buyers difficulty in finding financing. Manufacturing Demand for manufactured products shows little overall change in either direction. Minneapolis and San Francisco characterize their manufacturing sectors' performances as mixed, while growth in Atlanta is moderate except for construction and auto-related products.