Labor markets remain tight across the country, with numerous districts reporting continued difficulty in finding and retaining qualified workers. By contrast, low prices continue to weigh heavily on some important segments of the agricultural sector. Consumer Spending Many districts report continued steady to strong retail spending, while the Chicago, Dallas, Kansas City and New York districts mention weakening sales. Sales growth in the Boston district is generally exceeding retailers' expectations. But retailers in the Kansas City district report a decline in sales, following flat activity in the three previous surveys.
Most districts note that retailers expect strong consumer demand as the holiday season approaches.
Auto dealers report solid sales in the Dallas, Kansas City and Philadelphia districts, with weakening demand indicated in the Chicago district. In the Cleveland district, auto sales slowed in October after a record summer. Some dealers continue to have short inventories of some popular models. Fall tourism is steady compared to a year earlier in the Minneapolis district. Hurricane Floyd depressed tourism at coastal destinations in the Richmond district, but inland mountain resorts report gains.