Since the beginning of the year, economic activity has accelerated its pace. Exports continue to post strong gains and retail sales have increased sharply. Strong foreign and domestic demand makes for a more than 10 percent annual rise in industrial output. Firms are ready to hire personnel on a large scale. The number of employees is 2.2 percent higher than a year ago (+64,000) heading for a record of 3 million at its seasonal peak in summer. At the same time job vacancies have moved up by 40 percent. The weakness of the dollar favours the maintenance of a stable price climate. Import prices are no higher than a year ago, and domestic consumer price inflation is running at a moderate 3 percent annual rate. Due to the rise in the effective Schilling exchange rate the terms of trade improved markedly, bringing some relief for the trade deficit. The current account remained in surplus in early 1990, despite poor results in winter tourism.