Retail Most retail contacts report that sales are increasing at a steady, moderate pace. Sales gains in the second quarter are said to be in line with expectations. Areas of weakness, with modest sales declines, include hardware and men's apparel. Appliance sales have been weak throughout the year, but office and home computers are said to be rebounding from earlier depressed levels. An additional area of weakness is the discount retail sector, which is undergoing significant consolidation with many bankruptcies and store closings recently reported.
Employment is reported to be either steady or increasing in line with sales.
Contacts mention pockets of labor market tightness, including jobs in construction, tourism, and highly skilled occupations. Low-skill workers still appear to be abundant. Wages are reported to be growing at a 4 to 6 percent pace. All respondents report that competitive pressures are keeping both their suppliers' and their own prices steady. Profit margins are also holding steady.