This is beginning to hurt some commercial projects. There are reports that recent financial market volatility has resulted in delays of planned public offerings by some District companies. A few lenders have implemented slight increases in consumer loan rates, but current consumer and automobile loan demand remain unaffected. Residential lending and refinancing demand remain weak throughout the Sixth District, and overall credit quality is said to be healthy. Wages and Prices Tight labor markets continue to impact the District, although the more frequent reports of increasing wages remain scattered.
Employers continue to rely on overtime to fill employment gaps.
Local retail managers in some chains reportedly have been given authority to set wages to compete locally. Other firms are offering substantial signing bonuses to attract scarce labor. Contacts are concerned about finding staff for business expansions and are offering incentives, such as subsidized day care and flexible work hours, to retain current employees. More contacts than before report increasing prices. Stainless steel, copper, plastics, and lumber prices are increasing.