Shoe stores, lumber and hardware stores, and a discount retailer say that same-store sales are flat or declining from year earlier. By contrast, specialty retailers, consumer electronics, and the hospitality industry report double-digit sales increases. Most respondents are holding their employment levels steady. Unlike in June, none mention tight labor markets as a constraint on hiring. Wages are generally growing at an annual rate of 3 to 5 percent.
Most contacts report steady prices.
By exception, a discount retail chain is cutting prices in order to move inventory, while rates for Boston-area hotel rooms are rising at an annual rate of 7 percent. The respondent in discount retailing expects weaker conditions. Lumber and hardware stores cite interest rate hikes as an ongoing brake on the economy. Most First District manufacturing contacts indicate that recent business is up relative to a year earlier. However, their reports vary in tone, falling largely into two groups.