Automobile dealers report sales edged up last month but were slightly lower than a year ago. Sales of sport utility vehicles remained strong, while sales of other vehicles held steady. Dealers have kept inventories unchanged as they expect no major shifts of sales in the coming months. Manufacturing Manufacturing activity continued to expand last month, with plants operating at moderately high levels of capacity. Purchasing agents reported some difficulties obtaining materials due to rail-shipping delays, which increased lead times.
Some agents expect rail-transportation problems to continue in the near future.
In spite of a moderate decline in inventories last month, most manufacturers say they plan further reductions because stocks exceed desired levels. Housing Builders report housing starts were down slightly last month but up somewhat from a year ago. Builders anticipate a normal seasonal improvement in construction activity in the coming months. Sales of new homes edged down last month due primarily to seasonal factors, resulting in a slight increase in inventories of unsold new homes. Most building materials were readily available and delivery times were normal.