Appliance retailers expect their sales to decline in the rest of the year, citing ongoing industry consolidation. A discount retail contact, which has been down in the last six months, is improving, with current sales growth slightly positive. Unlike earlier in the year, many retailers now say increased demand is allowing them to raise prices, with corresponding improvements in profit margins. Most supplier prices are reported to be either holding steady or declining. The exception is lumber, for which prices are moving up.
Employment seems to be picking up in all sectors and employee turnover is increasing.
With the exception of building materials stores, wages are reported to be holding steady. The building materials sector, with rapidly growing head counts, sees wage growth of 4 percent. Capital expansions also appear to be picking up, with only the discount retail sector lacking significant expansion plans. In summary, retailers see a strong economy and expect solid growth to continue during the next six months. Most of the remaining respondents indicate that sales are flat or up a little.