All contacts report rising employee turnover and increased difficulty replacing workers. Wages are said to be rising about 4 percent. Respondents report that they are holding their prices steady, largely because competitive pressures constrain their ability to raise them. Manufacturing Most First District manufacturing contacts report that recent sales are above the levels of a year earlier, with just over one-half indicating growth as high as 8 to 20 percent. Strong gains are reported by makers of automotive, general industrial, and computer equipment, as well as furniture.
Manufacturers note some signs of turnaround in commercial aircraft and semiconductor markets.
Medical sales are reportedly mixed, while markets for textiles and paper remain quite flat. Most contacts report that, overall, materials costs are flat or down somewhat. Costs for some metals and furniture-grade lumber are rising, however. Selling prices also remain largely flat, except for small to moderate increases for fabricated metals, industrial equipment, and paper products. Most contacts anticipate only moderate increases in their work forces in coming months, while describing capital expenditures as heavy or rising.