Contacts continue to express concern over labor shortages for skilled and unskilled workers, but reports of escalating wages are not pervasive. However, contacts noted modest increases in some prices. According to retail contacts, March sales were weak compared with a year ago because Easter was later this year. Early April results were much stronger than the previous year. Overall, most retailers agreed that recent sales had met their expectations, and inventories remain in good shape.
Apparel continues to be a strong seller, while home-related sales have been spotty.
Contacts expect sales during the second quarter to be up slightly compared with a year ago. Construction Reports from real estate contacts indicate that both new and existing home sales were stronger in March than a year earlier. However, sales during the first half of April have weakened slightly. Home construction has picked up noticeably from our last report, with the majority of contacts reporting increased activity compared with a year ago. Both Realtors and builders anticipate modest increases in home sales and construction during the second quarter compared with the previous year.