Firms in a variety of industries continue to indicate that finding and retaining employees is difficult. While skilled workers are most in demand in service industries, some manufacturers and construction companies indicated they have been unable to fill their needs for both unskilled and skilled labor. Reports of rising prices have increased in both the industrial and consumer sectors. Looking ahead, most business contacts in the Third District expect an easing in growth, although retailers predict an improvement in sales. Manufacturers forecast only steady rates of shipments and orders, on balance, during the next six months.
Retailers expect an upturn in sales once the spring shopping period gets under way.
Auto dealers foresee a nearly steady rate of sales. Bankers anticipate slower growth in business lending as a result of greater caution on the part of lenders as well as borrowers. Bankers expect mortgage lending to decline. Manufacturing Third District manufacturers reported moderate increases in shipments and new orders in April. While only a few producers of nondurable goods posted gains, most makers of durable goods saw increased demand for their products.