Expecting continued growth, respondents have capital expansions underway. Manufacturing Most First District manufacturing contacts report that recent business is flat or up at a single-digit rate compared to a year ago. Sales of computer equipment and home furnishings continue to show above-average gains. Two instruments manufacturers and a medical equipment producer report pickups in orders following a period of sluggish performance, and a paper mill indicates slight improvement relative to the very weak conditions prevailing at the beginning of the year. By contrast, a machine tool maker and a consumer items manufacturer report slowdowns.
Most manufacturers indicate little if any pressure from materials costs.
A notable exception is the price of wool, up sharply in recent months. Selling prices are also largely stable. Some contacts report that retail stores are pressing for concessions. Respondents generally report that employment levels are a little higher than a year ago. Except for some delays in filling vacancies in software, engineering, and international marketing, labor availability is said to be adequate.