Respondents say tight labor markets are still not leading to sizable wage hikes. Residential real estate markets are doing well throughout New England. Employment is generally reported to be holding steady on a same-store basis. Hiring is up, however, because tight labor markets have led to increased turnover and retailers that are expanding operations are raising head counts. Nonetheless, shortages are reported only for information technology professionals.
Most respondents report that their selling prices are steady.
Troubles in Asia are said to have led to declines in some vendor prices, notably for lumber and fuel. Most contacts say that profit margins are holding steady, with input price declines being offset by wage growth in excess of productivity improvements. With the exception of tourism, respondents are planning modest capital expansions this year. Many contacts are investing heavily in computerization, including inventory control systems to improve efficiency. Looking forward, contacts expect strong sales growth to continue.