The latest Manpower survey indicates that measurably more firms plan to boost their hiring in the third quarter compared with the second quarter. Strong demand from business customers has boosted loan demand at large District banks. Consumer Spending District contacts report that, on average, sales were up 2 percent in April and 2.5 percent in May over a year earlier. With summer approaching, athletic apparel and summer clothing have been hot sellers, while home electronic equipment has remained on the shelves. Most contacts state that their inventories are smaller than usual because of better inventory management.
Most retailers have extremely positive outlooks for the summer.
Most of the automobile dealers surveyed have strong incentive plans in effect, which are scheduled to last at least through June. Dealers believe that recent strong sales increases, on the average of 4 percent in April and 5 percent in May over a year earlier, are a result of these incentives. While most dealers report inventories at satisfactory levels, some are still struggling with inventories that are too large. Most dealers believe they will have steady sales this summer, with some anticipating strong sales. Most contacts report continued vigorous economic activity.