Services Demand for temporary staffing, accounting, consulting and legal services continued to increase, and respondents were optimistic about 1998, but they also reported being unable meet increasing demand because labor market tightness constrained their hiring. Legal and accounting services were stimulated by growth in initial public offerings, mergers, and acquisitions. Although the use of transportation services slowed seasonally over the past six weeks, contacts reported stronger market conditions than a year earlier, particularly for passenger travel and hi-tech freight. Shippers reported no significant improvement in rail bottlenecks. Retail Sales Retailers reported good sales growth throughout most of the district, with booming sales growth in Houston.
Contacts expect a good holiday season.
The strong dollar has lowered import prices and softened upward pressure on selling prices. Prices for some imported goods are expected to continue to fall in coming months. Financial Services Bankers reported steady loan demand over the past six weeks, with strong competition continuing in commercial lending. Credit unions reported a slowing in auto loans, but expect them to pick up in the first quarter. Loan rates are stable, with the exception of slight declines in auto and mortgage rates.