Residential real estate continues to do well in New England and assets under management continue to rise at investment management firms. Most contacts in all sectors say they face tight labor markets for some occupations, but they cite only moderate increases in general wage levels. Retail A plurality of retail contacts report sales growth of 3 to 5 percent, a few percentage points greater than expected. The building materials and home furnishings sectors are doing even better, with growth in the 10 to 20 percent range. On the downside, apparel, discount, and appliance retailers report sales 3 to 8 percent below year-earlier levels.
Inventories are generally in line with sales.
With the exception of stores selling building materials and home furnishings, which expect sales to grow 15 percent, and discount and appliance retailers, who see ongoing consolidation contributing to continued losses, First District retail contacts expect moderate, sustainable growth to continue through 1997. Retail employment is reported to be fairly level, and most retailers are expanding capital moderately. The exception is building materials and furnishings stores, which are expanding their work forces and making major capital investments. All contacts report rising employee turnover and increased difficulty replacing workers. Wages are said to be rising about 4 percent.