San Francisco Full report The First District economy continues to expand at a moderate pace. Sales and revenue gains are reported to be healthy, but manufacturers and retailers express concern about whether the current pace of activity is sustainable. Prices are said to be generally flat, although wage pressures are increasing in some submarkets.
Contacts say the residential real estate market is performing well.
Retail Most retail contacts report that sales continue to grow at a moderate pace in the current quarter. Areas of strength are building supplies, tourism, office and graphic reproduction supplies, and home furnishings, all of which are said to be growing at a 10 to 20 percent pace. Areas of weakness are apparel sales and discount retailing. Across the board, sales growth is said to be at or slightly above expectations, with inventories at desired levels. Employment is reported to be either increasing moderately or holding steady.