Consumer Spending Retail sales picked up in the last month, building on the slightly stronger numbers seen since June. Apparel goods have been selling especially well. Seasonal discounts were seen as helping to create a strong computer software market. General retail inventories are reported to be at good levels for the season, and little upward price pressure from suppliers is noted. District auto sales have been fairly strong in the past two months a substantial improvement from earlier in the year.
Most dealers report that sales are in line with or slightly up from last year's rapid pace.
However, most of the recent improvement has been attributed to the generous incentives used to clear out last year's models. New car inventories are at or near desired levels for almost all dealers surveyed. Used car sales, while improved, are still not as strong as the new car market. Several dealers report that the portion of customers with good equity and credit has risen since earlier this year. Tourism in the District has been varied.