Upscale retail sales reportedly mirrored fluctuations in the stock market, with modest growth during December and January, but declines or no change in November and February. Despite weak results, unplanned inventory accumulation was reported only by contacts in consumer electronics and upscale retail. Contacts in the tourism sector say growth slowed unexpectedly in the November through February period. Retail respondents are holding employment levels steady. Wages continue to rise at a 3 to 6 percent pace.
Most contacts report that store prices are steady.
While hotel room rates continue to rise, the rate of increase has slowed. Across the board, retailers say that higher energy costs are raising overhead, but productivity gains are holding down total costs. Looking forward, the mood of retailers has turned cautious. While all retail respondents expect weak economic growth during the first half of 2001, most say they are continuing with previously planned expansions of their operations. The majority of First District manufacturing contacts continue to indicate that recent sales or orders are up relative to a year earlier.