Price reports from industry continue to show little overall increase, with improved productivity accounting for any profit gains. Two sources noted that manufacturing wage growth had stepped above the 3 percent level, although these expenditures have also been matched by higher productivity. Retailing District retailers report mixed results for January and February, but give no indications that retail conditions have changed significantly since the previous District report. Spending activity during the two February holidays was thought to be about average. Household supplies and better apparel items are considered to be selling particularly well, while electronics, furniture, sporting goods, and general apparel are not.
Retailers indicate that prices are stable and that inventories are in good to excellent condition.
Auto Dealers District auto sales slowed in February after a strong performance in January. Nonetheless, dealers remain optimistic about spring sales prospects and report that showroom traffic and general consumer interest have been strong. A few dealers stated that instances of insufficient equity and bad credit have increased. Leasing growth appears to have leveled off. While most dealers reported inventories slightly above desired levels, others noted limited supplies of specific models that were selling unusually well.