Mortgage and refinancing loan demand are subdued, while credit quality is good and bankruptcies have continued to gradually decline. Wages and Prices Tight labor markets continue to adversely impact parts of the District. Reports of increasing wage pressures, however, are infrequent. Some contacts say that they are still striving for efficiencies and reducing labor costs by installing labor saving devices, while others report that discretionary projects are being postponed until the year 2000. Firms have reportedly been forced to find new ways to find qualified employees, such as looking for able-bodied retirees, and issuing signing bonuses and cash awards for current employees who find new employees.
Contacts again expect mostly stable prices for inputs or outputs, with only a few exceptions.
A plastic manufacturer sees significant price increases in his crude oil based raw materials. Another contact mentions that a continuing shortage of building materials is driving up prices of drywall and brick. More reports indicate increasing pharmaceutical prices. To comment on this site, please fill out our feedback form.