However, reports generally indicate that manufacturers are raising their selling prices less than the increase in input costs. Only Richmond explicitly states that the prices of manufactured goods accelerated in the most recent survey period, describing the increase as slight. By contrast, Chicago characterizes pricing in the manufacturing sector as soft. Nonfinancial Services Districts reporting on business services generally describe demand as strong within the sector although Cleveland reports a softening in the need for temporary workers. Also, demand for legal services from dot-com companies has slowed somewhat in Dallas because of weakness in financial markets and fewer IPOs.
Labor markets remain tight throughout the country.
For example, software and information technology service firms in Boston report high turnover rates and difficulty competing with compensation packages offered by dot-com companies in the area. Contract employment firms in both Richmond and Boston relate that clients are increasingly using their services to fill permanent positions, because of the difficulty they are having finding workers on their own. Banking and Finance Most Districts report either a reduction or a slowing in the growth of loan demand, especially for mortgages. Richmond and Atlanta report softening demand for commercial loans. New York, Richmond, Atlanta, Chicago, St. Louis, and Dallas note sluggish or decreased mortgage demand.