Retail Most retail contacts report strong sales growth in recent months compared to a year earlier, generally above expectations. Sectors of strength were general retail, consumer electronics, home furnishings, and building materials. Men's casual wear is said to be weak, but the discount retail sector has rebounded somewhat. Looking forward, retailers expect strong sales growth to continue for the remainder of the year but they express some concern about the outlook for 1999 and beyond. Their uncertainty centers on possible fallout from turmoil in international financial markets and on domestic consumer response to recent stock market declines.
Employment is reported to be holding steady on a same-store basis.
Wages are reported to be increasing at a 3 to 6 percent rate. Most respondents report that competitive pressures are continuing to keep price inflation in check. Most contacts say profit margins are holding steady. Manufacturing Three-quarters of the First District manufacturers contacted indicate that recent business is up from a year ago. Most of these respondents cite percentage gains in the single digits, although orders for medical equipment are said to be rising strongly.