Consumer Spending Retail sales in the district were, on balance, close to plan in September, but rose above plan in early October. For the first half of October, same-store sales gains ranged from 2 to 10 percent. Home appliances and electronics continued to lag other categories of merchandise, though one contact noted strength in home-improvement goods. Inventories were generally at desired levels, as the industry stocks up for the holiday season. Most retailers are planning for 2 to 4 percent same-store sales gains during the Christmas season, though a few expect stronger gains.
Retailers report stable input costs but some increase in effective selling prices.
However, effective selling prices are up moderately, as retailers are discounting less aggressively than a year ago a trend that is expected to prevail through the holiday season. The region's commercial real estate markets continued to strengthen since the last report, with brisk leasing activity and declining availability rates across most of the New York metropolitan area. Office availability rates continued to decline in both downtown and midtown Manhattan in September. The District's residential real estate markets were mixed in the third quarter. Realtors in New York and New Jersey report that sales of existing single-family homes slowed from the second quarter's brisk pace.