However, many continue to express concern about the continuing expansion of retail space in major regional markets and resulting stiff competition and tight margins. Auto sales show moderate strength, according to registration numbers and reports from dealers association spokespersons. A businessman from northeastern Montana noted that improved cattle prices are resulting in strong demand for pickups, as ranchers make long-deferred replacements of their vehicles. As in general merchandise, structural change in auto retailing is accentuating competitive pressures for smaller independent dealers, particularly those in small towns. But sources in the sector are generally optimistic in their outlook for 1998.
Tourism is the weakest component of consumer spending.
Reports are mixed, with some resorts in Minnesota and Wisconsin reporting moderate to good fall business. But visits to major tourist destinations in the Dakotas and Montana were disappointing overall. Good weather and ample game in key hunting areas is one bright spot. Employment, Wages and Prices Securing needed employees in a tight labor market remains a knotty problem for virtually all employers. A major manufacturer of personal computers located in South Dakota feels that further expansion in that state is stymied by a lack of workers.