Sales of appliances, personal computers, and consumer electronics declined in the quarter, but in line with expectations. Respondents expect a continuation of modest sales growth through the first half of 1997. Employment is said to be increasing in line with consumer spending and this steady growth is expected through 1997. Wages are reported to have risen slightly in the last quarter and this trend is also expected to continue. All respondents indicate that competitive pressures are constraining their ability to raise prices, even with increased demand.
Costs are stable, so profit margins are generally holding.
No contacts except those in tourism plan to expand capital significantly in 1997. Overall, retail respondents see modest and sustainable growth continuing through 1997. Manufacturing Half of the First District manufacturers contacted have experienced revenue gains from a year ago. Substantial increases are reported for innovative technology products, furniture, selected consumer items, and some business services provided by manufacturers. Revenues have been flat or declining for the remaining half of the sample.