Brick manufacturers are considering a price hike to pass along higher natural gas prices and shipping fuel surcharges. High-tech firms reported an easing of the tight supply of semiconductor chips. The supply of flat-panel monitors has also increased, after being in tight supply for a couple of years, and their prices are softening. Homebuilders say that cost pressures are significantly reduced from the end of 1999, with lower prices for sheet rock and cement. Manufacturers also reported lower selling prices for concrete and cement, which they attributed to increased competition.
Labor markets remain tight.
Wage pressures are extreme for some types of workers, particularly those who are being demanded by Internet firms. Some service firms reported that higher wages are translating into higher fees. Some high-tech companies say wages have accelerated slightly in recent weeks, and noted that workers are demanding more pay in direct wages instead of stock options. Still, some firms reported no change in wage pressures. One retailer said that workers appear to be more sensitive to workplace conditions than moderate increases in wages.