Retail Most retail contacts report moderate to strong sales growth in the period from July through early October, about in line with expectations. Sectors of strength are mail-order apparel, office supplies and office technology products, building materials and supplies, hardware, and tourism. One retailer selling apparel in Asia reports weak, but no longer declining, demand. By contrast, upscale retailers and sellers of graphic products report a slowdown in growth in September or early October. An upscale retailer blamed stock market uncertainty, in part, for the decrease in sales.
Inventories are generally at desired levels.
Base employment is said to be holding steady and increasing only with store expansion. Most retailers hope to hire the normal range of workers for the holiday season, but expect to experience difficulty in recruiting. Many contacts report wage growth in the 5 to 8 percent range, an increase from earlier in the year, as they attempt to retain valued help in a tight labor market. Most respondents say prices and gross margins are holding steady. Only a few retail respondents plan to expand operations.