In: Economics
The Federal Reserve released its regular "Beige Book." the January 17th release . Reserve system banks along with the Federal Reserve Bank of NY deliver a summary and slightly longer details of economic activity in our region in this report. Read the NY Fed's section and write a memo summarizing the details of the report
Overall Economic Activity
Reports from the 12 Federal Reserve Districts indicated that the
economy continued to expand from late November through the end of
the year, with 11 Districts reporting modest to moderate gains and
Dallas recording a robust increase. The outlook for 2018 remains
optimistic for a majority of contacts across the country. Most
Districts reported that non-auto retail sales expanded since the
last report and that auto sales were mixed. Some retailers
highlighted that holiday sales were higher than expected.
Residential real estate activity remained constrained across the
country. Most Districts reported little growth in home sales due to
limited housing inventory. Nonresidential activity continued to
experience slight growth. Most manufacturers reported modest growth
in overall business conditions. Reports indicated that some
manufacturers increased capital expenditures over the reporting
period. Most reporting Districts noted continued growth in
transportation activity. Loan volumes in many Districts were
steady. Among reporting Districts, agricultural conditions were
mixed and energy contacts described a slight uptick in
activity.
Employment and Wages
On balance, employment continued to grow at a modest pace since the
previous report. Most Districts cited on-going labor market
tightness and challenges finding qualified workers across skills
and sectors, which, in some instances, was described as
constraining growth. Several Districts noted elevated demand for
manufacturing and construction labor. Most Districts said that
wages increased at a modest pace. A few Districts observed that
firms were raising wages in a broader range of industries and
positions since the previous report. Some Districts reported that
firms expect wages to increase in the months ahead.
Prices
Most Districts reported modest to moderate price growth since the
last report; exceptions were Chicago, which noted that prices
increased only slightly while San Francisco noted price inflation
was down slightly. Reports of pricing pressures were mixed across
the country although several Districts noted increases in
manufacturing, construction, or transportation input costs. Firms
in some Districts noted an ability to increase selling prices.
Retailers in some Districts reported modest price increases and
there were reports of rising home prices across most of the
country. Agriculture and energy commodity prices were mixed.