Prices were subdued at the retail level and mixed for construction materials, while prices for most manufacturing materials continued to decline. Retail Sales Retailers reported a rebound in sales last month and expect a strong holiday season. Inventories expanded in preparation for the Christmas season, and most managers are satisfied with current stock levels. However, most retailers plan to reduce stock levels after the holidays. Automobile sales recovered nicely last month, led by strong performance of trucks and sport utility vehicles.
Sales are now moderately above year-ago levels.
Dealers are cautiously optimistic about the near future as some seasonal decline in sales is expected over the next few months. Following the GM strike, dealers have been vigorously expanding vehicle inventories and expect further expansion in the near future. More dealers reported a tightening in consumer credit compared to the recent past. Manufacturing Tenth District manufacturing activity was largely unchanged last month, with plants operating at lower levels of capacity than in the first half of the year. Manufacturing materials were generally available, and lead times again declined slightly.