Area manufacturers with Asian ties report a plunge in orders and foreign production activity. Adversely affected have been a few large capital goods makers and motor vehicle suppliers. Overall, though, the direct impact of the Asian slowdown on the local economy appears to be limited. Slight upward pressure on some industrial commodity prices is seen, most notably for paper products, but price increases remain modest overall. No significant materials shortages are noted, although concerns about labor availability continue to be heard.
Discount stores appear to have led other retail categories in sales growth during the season.
Department stores fared less well. The volume of catalog sales rose sharply again in 1997, helped in part by the growing popularity of the Internet. All respondents conceded that, while early December sales were slow, consumer spending rebounded sharply during the two weeks prior to the Christmas holiday. Selling especially well during the holiday shopping season were electronics, housewares, and jewelry. Apparel sales were soft, and mild weather appears to have hampered sales of some seasonal items.