Wages are rising slowly, except for selected high tech occupations. Office rents are increasing, notably in the Boston area, as demand for commercial real estate outstrips fairly level supplies. Insurance company revenues rose in the first quarter, led by annuities and mutual funds. Retail Most contacts in the retail sector recorded fairly strong sales growth during the first quarter. The sales increases are said to be in line with expectations.
Inventories are in line with sales.
On the high end, both the building materials and tourism sectors report very strong growth. In contrast, appliances and computers are seeing weak sales, but this too is said to be in line with expectations. 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.