Several Districts note that firms are using creative recruiting or compensation techniques to reduce the pressure on wages. With a few exceptions, prices for goods are said to be moving very little, if at all, at the manufacturing level for inputs or finished goods, and at the retail level. Consumer Spending Most Districts report that retail sales are growing at a fairly moderate pace. Exceptions are the Minneapolis and San Francisco Districts, which report very strong sales growth. Only the Richmond District says that sales growth has slowed, albeit from a brisk to a more moderate pace.
Districts reporting unanticipated increases in sales activity are Chicago and Dallas.
In most Districts, inventories are at desired levels. However, Chicago reports lower inventories due to a weather-related increase in sales, while Richmond reports inventory accumulation as a result of moderating sales growth. In addition, the St. Louis and San Francisco Districts say that sportswear and sporting goods sales are strong, while Boston, New York, and Cleveland cite strength in home furnishing sales. Although San Francisco reports generally solid retail sales growth in the District, softness is noted in Utah's retail and tourism businesses. All Districts report tight labor markets and difficulty attracting and keeping retail employees.