Also, foreign economies appear to be slowing
, which could damp demands for exports; and continued nervousness is evident in the behavior of participants in financial markets, keeping risk spreads relatively elevated.
While the rate of inventory accumulation could be expected to slow in the current quarter, the extent of that slowing
and its retarding effects on near-term economic growth were uncertain.
Recent data on orders and shipments of nondefense capital goods indicate appreciable increases in outlays for business equipment, and building contracts point to some slowing
of the decline in nonresidential construction.
One bright spot in the equipment picture, however, has been the growth in outlays for computers and other information-processing equipment, after some slowing
during the second half of 1989.
in sales of motor vehicles was most pronounced during the fourth quarter of 1989, reflecting a "payback" for sales that had been advanced into the third quarter and a relatively large increase in sticker prices on 1990-model cars.
Inventories held by the Commodity Credit Corporation edged down further in the first quarter, but the rate of decline has been slowing
(on a seasonally adjusted basis) since the middle of last year as the effects of last summer's drought have dissipated.
The Government Sector Budgetary constraints have led to a slowing
of government purchases, both at the federal level and among state and local governments.
If the shift is too large, the atoms no longer absorb laser light and stop slowing