Local retailers, however, say vendor price increases are only sporadic and selling price increases are nonexistent. Real estate contacts say housing markets in New England have slowed. Retail Most retail contacts report that sales are growing at expected rates. One exception is an apparel seller with sales growth slightly below expectations. Employment levels are mostly holding steady.
Labor shortages appear to be leading retailers to boost wages in order to retain critical help.
Overall wage growth is said to be running at a 4 to 5 percent rate, in the upper half of the 3 to 5 percent range reported previously. The tourism sector reports that the available labor pool has been exhausted, constraining the operations of new start-up restaurants, in particular. Merchants generally say that they are not raising selling prices and that vendor price increases are only sporadic. Two exceptions are that lumber prices continue to decline and hotel rates are rising in response to continued excess demand for rooms. Most retail contacts plan some modest expansion of their operations during the next six months.