Highlights of the Fed's Beige Book
- Outlook generally positive
- Employment continued to rise slightly overall even as labor markets remained tight across the country
- Vast majority of 12 districts continued to note difficulty in hiring workers
- Some contacts noted their inability to fill jobs was constraining business growth
- Wage pressures rose at modest pace
- Stable to moderately growing consumer spending and increases in Auto sales and tourism were seen across several districts
- More districts reported an expansion in manufacturing than in prior period
- Full text
Reading through the headlines it makes it sound like a tight labor market is a problem but wage growth isn't really there and the Fed is shifting to a paradigm that will allow them to let inflation run hot. So it's more the economic commentary that's important here and that's all generally positive.
Here is the main summary:
Economic activity expanded modestly from October through mid-November, similar to the pace of growth seen over the prior reporting period. Most Districts reported stable to moderately growing consumer spending, and increases in auto sales and tourism were seen across several Districts. In manufacturing, more Districts reported an expansion in the current period than the previous one, though the majority continued to experience no growth. The picture for nonfinancial services remained quite positive, with most Districts reporting modest to moderate growth. Transportation activity was rather mixed across Districts. Reports from the banking sector indicated continued but slightly slower growth in loan volumes. Home sales were mostly flat to up, and residential construction experienced more widespread growth compared to the prior report. Construction and leasing activity of nonresidential real estate continued to increase at a modest pace. Agricultural conditions were little changed overall, remaining strained by weather and low crop prices. Activity in the energy sector deteriorated modestly among reporting Districts. Outlooks generally remained positive, with some contacts expecting the current pace of growth to continue into next year.
