Although merchants' reports on sales have been mixed, most expect improvement over the next few months. Prospects for the tourism and hospitality sector are positive, with continuing expansions of attractions and properties. Residential construction and sales weakened a little but remain at high levels. Commercial real estate markets are healthy but with some modest deceleration in new construction. Factory production has been sluggish in sectors primarily affected by foreign imports, but other sectors are adding to payrolls.
Bankers report continuing strong loan demand.
Tight labor markets are adversely impacting high-tech employers, but reports note mostly stable wage changes for other employers. Prices are expected to hold steady over the next few months, with a few exceptions. Consumer Spending Recent sales reports from District retailers during January and February were mixed. Most managers said that recent sales had generally met their expectations. The strongest sellers have been women's and children's apparel, cosmetics and home-related products, while men's apparel sales have been weak.