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. The residential real estate market in New England is doing well. All contacts report moderate or high levels of activity, but complain about inventory shortages. Most First District contacts in the insurance industry report modest growth in sales in the first quarter of 2001, but some mention a loss of revenue as many people are pulling out of equity products. All respondents say their employment levels are stable.