Retailers note especially strong current sales of spring apparel, shoes, and cosmetics. Household goods sales, however, have apparently weakened recently. Product prices are expected to remain about unchanged over the next few months, according to most contacts. Inventories of unsold homes remain adequate for expected sales, while expectations for second quarter building are mixed. They are slightly more positive for the third quarter of this year.
Contacts report that commercial real estate markets remain strong.
They believe that new industrial and office development continues because of lower vacancy and higher rental rates. The multifamily sector is said to be past its peak, but there are some reports of slight increases in the number of projects. Manufacturing Reports of factory activity have been varied. Although new orders and the factory workweek declined for a number of firms, an increasing number of companies also added to payrolls. Aerospace firms continue to gain new contracts and expand.