In addition, manufacturers express concern about sizable projected increases in the cost of medical benefits. Retail Most retail contacts report solid sales growth during the months of July through September. These growth figures, in the middle single-digit range, are generally better than sales projections for the period. Inventories are considered to be at desired levels. Looking forward, retailers are optimistic that consumer demand will remain strong through the important Christmas period.
Employment is said to be holding steady.
Most retail contacts continue to say that wages are growing at a 3 to 5 percent pace. All respondents indicate that the labor market is very tight and some are having difficulty finding temporary help for the Christmas season. In contrast, contacts are having no difficulty hiring or replacing permanent help, although raiding is reported to be more common. Most retail respondents say that consumer goods price inflation is non-existent and that vendor prices are either holding steady or declining. By exception, hardware prices are increasing because of manufacturers' price increases.