The majority of contacts say that they do not intend to expand their operations in 2001. Retailers say they are holding their prices level and they are seeing only sporadic increases in vendor prices. About one-half of First District manufacturing contacts report that recent sales or orders are down relative to a year earlier. The remaining one-half indicate that business is flat or up. Half of the firms contacted express concern about excess inventories.
Many manufacturers report new efforts to reduce costs.
Roughly two-thirds are tightening their belts with respect to capital spending. The majority of contacts have implemented layoffs or are considering layoffs in the near future. Firms that are hiring generally say that the number of available applicants has increased and their compensation expectations have become more reasonable, although some engineering and information technology positions remain challenging to fill. Respondents indicate that materials costs are generally flat or down. Selling prices also are said to be mostly flat or down.