San Francisco Full report Economic conditions in the First District are increasingly mixed. Retail contacts generally report moderate to strong sales growth, but some sectors began to soften in September or October.
Prices continue to be steady.
Selected labor markets are still said to be tight, but both manufacturers and mutual fund firms are reducing hiring. Retailers are cutting back on capital spending. Firms say they are planning for 1999 with increasing caution. Retail Most retail contacts report moderate to strong sales growth in the period from July through early October, about in line with expectations. Sectors of strength are mail-order apparel, office supplies and office technology products, building materials and supplies, hardware, and tourism.