Retail discounting just before Christmas and around the turn of the year was more extensive than usual in some areas. However, the Kansas City, Boston, and San Francisco districts say some extreme shortages have eased. Looking forward, business contacts in most districts remain optimistic about 1999, especially the first half. Philadelphia and Atlanta indicate that some contacts expect business activity to accelerate early this year. However, respondents in most districts expect somewhat slower growth in 1999 than in 1998.
Most districts report that retail sales grew at a moderate pace during the holiday period.
By exception, the Kansas City, Philadelphia, and Minneapolis districts experienced brisk sales growth. Respondents in the Boston and Philadelphia districts cite mixed sales results, with some sectors showing strong activity and other sectors experiencing softness. Only in the Atlanta district do contacts report weak holiday sales, up only slightly from a year earlier. Retailers in many districts report a surge in sales late in the season, led by extensive price discounting, which brought inventories to desired levels. Sales of consumer durables are reportedly strong in every district, with the most robust results in home appliances, home furnishings, consumer electronics, and automobiles.