Fed’s Beige Book Shows Signs of Continued Expansio
Washington, DC, December 2--The economy kept expanding from mid-October to mid-November, picking up speed in several regions of the country, according to the Federal Reserve’s Beige Book, which was released Wednesday.
The 12 Federal Reserve districts generally paint a picture of continued economic growth from mid-October to mid-November, with a number of areas improving. The New York, Philadelphia, Atlanta and Dallas districts reported stronger growth. The Cleveland Fed district was the only district reporting little change in economic activity, the Fed said.
Consumer spending was "uneven," with only a few districts reporting stronger retail sales, the Fed said. Automobile sales were flat to down in most districts.
Manufacturing activity increased in most regions, with nine districts reporting greater production, the Fed said. "Overseas competition continued to weigh on several industries, but a number of reports noted increased capital investment and hiring," the Fed said. "Manufacturers remained concerned about high energy prices and rising prices for other inputs."
The beige book, named for the color of its cover, is a summary of economic activity prepared for use at the central bank's next Federal Open Market Committee meeting on Dec. 14. The most recent report was prepared by the Federal Reserve Bank of Dallas and reflects information gathered before Nov. 22.
Labor markets "continued to improve" in recent weeks, with numerous reports of hiring, the Fed said. The Atlanta, Chicago, Kansas City, Minneapolis and New York Fed districts reported increased hiring or improved labor markets. There continued to be little wage pressure in most districts, but a few districts noted that higher benefit costs are pushing up total compensation. Only the Chicago Fed district reported that overall wages rose at a slightly faster pace, the report said.
Firms reported greater cost pressures, particularly for energy, transportation, food and petroleum-based products. "While competition limited the ability of producers to pass higher costs forward, several districts noted that some industries were successful in passing along cost increases," the Fed said.
