Most surveyed automobile dealers report a slowing in sales for April and May compared with one year ago. Because of this slowdown, many have offered more frequent rebates to move stock. Dealers report that relatively more buyers are purchasing new cars rather than used cars. Manufacturing and Other Business Activity District contacts continue to report moderate sales and employment growth. Tight labor markets, especially for construction and other skilled trade workers, are still being reported from most parts of the District.
Some firms are unable to meet higher demand because they are understaffed.
One firm reports that it raised its starting wage about 15 percent to attract qualified candidates. More than 300 Teamsters who drive concrete trucks in the St. Louis region went on strike June 2, slowing or halting much residential and commercial construction in the area. Several firms that supply materials to building contractors have recently seen sales increase as construction has picked up. One of these suppliers notes that he was able to pass along a 3 percent price increase, which seems to be sticking, to his customers. On the other hand, a maker of ice cream and other frozen products has seen sales slip recently because of unusually cool weather.