The consensus forecast among surveyed firms is that prices will remain mostly level for at least the next six months. Retail Most Third District retailers reported that sales during the Thanksgiving weekend were in line with their expectations. Sales increases for most of the stores contacted were in a range of 4 to 6 percent, in current dollars, from the year-ago period. As has been the case for much of the year, discount stores had better results than most other types of stores. Sales were strong for toys, jewelry, and traditional gift items, such as sweaters and jackets, but sales of winter coats and other outerwear were hampered by the warm weather that prevailed over the weekend.
Merchants expect the high level of consumer confidence to bolster sales into the new year.
Auto dealers reported a slight increase in sales in November compared to October. Compared to year ago, however, the sales rate was flat. Nonetheless, dealers were generally satisfied with the pace of business, although a few still said they were unable to obtain as many popular new models as they could sell. Finance Bankers contacted for this report generally indicated that loan volume outstanding at their institutions was level during November. Business loans were said to be steady, and most bankers continued to describe the market as very competitive.