Appliances, jewelry and women's apparel, on the other hand, have been strong sellers. For the most part, retailers' inventories are at desired levels. Contacts are optimistic about the summer, expecting sales to increase between 4 and 5 percent over a year earlier. Car dealers report that sales in April and May are down about 6 percent on average from a year earlier. In some instances, declines of up to 20 percent have been reported.
Many contacts cite rising interest rates and gasoline prices as causes of the slowdown.
Most dealers, however, remain optimistic that sales this summer will pick up. Manufacturing and Other Business Activity Contacts report stable business activity in the District, although tight labor markets are still a major problem for nearly all industries. Some firms continue to note that labor shortages are restricting their output capabilities. Many other firms are coping by recruiting overseas workers to fill positions. Hotels and retail stores report offering career counseling, job training and child care to attract employees.