Meanwhile, investment management firms continue to see increases in assets under management, and residential real estate markets are doing well. Manufacturers and retailers say wages are rising 3 to 5 percent and prices are generally level. Retail Most retail contacts report that sales have been growing steadily in the current quarter, with inventories at desired levels. Areas of strength are apparel, toys, home furnishings, building materials, and office and graphic reproduction supplies, where respondents report sales growth rates of 10 to 15 percent, bettering expectations. Areas of weakness include appliances, discount retailing, and footwear.
Employment is said to be either increasing or holding steady.
Contacts that are increasing employment are staffing expanded operations. Most contacts report difficulty attracting help and a corresponding decline in available labor quality. Labor market tightness, however, is not translating into higher wages. Wages are said to be increasing at a 3 to 5 percent annual pace. Contacts say that they are not offering wage premiums to attract labor, with the exception of computer systems professionals.