Input cost pressures have intensified somewhat, but prices of finished goods and services remain generally stable. Despite a number of layoff announcements, labor markets remain tight, with brisk hiring activity reported in financial and related services. Wage pressures remain strong but steady, while there are ongoing reports of large hikes in health benefit costs. Retailers report that sales were on or close to plan in December, with same-store sales up moderately from the strong levels of a year earlier. Real estate and construction activity remain generally robust, although Manhattan's residential and commercial real estate markets have cooled somewhat.
Purchasing managers report some slowing in the manufacturing sector.
The trucking industry has seen a sharp increase in bankruptcies and truck repossessions, as business has slowed while costs have risen. Consumer Spending Retail sales were on or close to plan in December. Compared to a year earlier, same-store sales at major chains ranged from modest declines to gains of close to 5 percent. Similarly, smaller retailers across New York State indicate gains of 2-4 percent. Most contacts note that weakness in the first half of the month was offset by a late surge in the days immediately before Christmas.