Commercial real estate markets are more robust in Greater Boston than elsewhere in New England. Retail Most retail contacts report that sales grew at a moderate to strong pace in the fourth quarter, matching expectations for the period. Sectors of strength are office supplies, tourism, appliances, and mail-order apparel. In all sectors, inventories are at desired levels. Looking forward, retail contacts expect sales growth in the 4 to 7 percent range for 1998, about on par with recent trends.
Employment is said to be either increasing moderately or holding steady.
Most contacts report that labor markets were tight during the holiday hiring period, with employers encountering difficulty in finding, attracting, and retaining employees. Permanent staff levels appear to be holding steady, with highly skilled computer programmers being the primary occupation with shortages. Among retailers reporting tight labor markets, half are offering wage premiums as one device to hire and retain help, although one contact said such premiums were ineffective. In general, wages are said to be increasing at a 3 to 5 percent annual rate, with selective premiums adding another 5 to 10 percent for specific individual employees. Most respondents report that prices are holding steady.