Shipping activity remains strong for the moment but our producers are beginning to tell us that there are signs of emerging weakness in the demand sector. No one is screaming as of yet, but it would be valuable to read our notes on the economy on the front page. In summary, it appears that the most likely conclusion to the attempted inflation fix is a recession as the Fed has made it clear that to them, rampant inflation, or worse, stagflation, is a more concerning outcome than a recession. In the interim, interest rate increases that we have seen over the last few months is bound to slow construction spending where borrowing is the main sources of financing for the projects. As you can see in the charts and graphs on the next page, shipment levels are riding the thin line compared to last year. Manufacturing and consumer spending remains positive for now and in terms of spending from the farm community, we expect that to remain strong. Could it be that lower steel input costs might offset higher interest rates and with ag income at high levels that spending will not be deferred? Any incentives on the part of the machinery producers will most likely get the farm community off the ranch and into the equipment market. On the construction
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