Sales of men's apparel, however, has softened relative to a year ago. The furniture category saw modest sales increases, as did home electronics. Strength in the electronics segment came from sales of digital satellite systems, home office equipment, and major appliances. Audio equipment has seen a sales decline. Owing to sales strength and store growth, retail outlets continue to add staff.
Retail prices remain flat, with the exception of electronics, where prices have been declining.
After posting record sales volumes in June, District auto dealers note a drop in new-car sales in July. GM dealers indicate that inventories have eroded and sales have dropped dramatically as a result. Other dealers, however, remain generally optimistic about continued sales strength. Used vehicle sales have been relatively stable, although prices at auctions are reportedly rising again after many months of decline. Banking and Finance Lending activity in the District is strong for both commercial and consumer loans, and demand for the latter category is continuing to strengthen.