Two instruments manufacturers and a medical equipment producer report pickups in orders following a period of sluggish performance, and a paper mill indicates slight improvement relative to the very weak conditions prevailing at the beginning of the year. By contrast, a machine tool maker and a consumer items manufacturer report slowdowns. Most manufacturers indicate little if any pressure from materials costs. A notable exception is the price of wool, up sharply in recent months. Selling prices are also largely stable.
Some contacts report that retail stores are pressing for concessions.
Respondents generally report that employment levels are a little higher than a year ago. Except for some delays in filling vacancies in software, engineering, and international marketing, labor availability is said to be adequate. Wages and salaries are reported to be rising in the range of 2 to 5 percent, with substantially higher increases and added perks offered in occupations that are in heavy demand. Most respondents indicate little change in the level of capital spending from a year earlier. Those making aggressive investments cite a need to develop new products or install more sophisticated equipment.