WASHINGTON (MNI) – The following is the Federal Reserve Beige
Book’s latest Seventh District economic assessment, published Wednesday:
Prices/costs
Cost pressures increased in late February and March. Contacts noted
higher energy prices, particularly for gasoline, although natural gas
prices remained at historic lows. Prices for chemicals, steel, and
non-ferrous metals also edged up. Wholesale prices increased; however,
retail contacts indicated that it had become increasingly difficult to
pass on higher wholesale costs to consumers. Wage pressures increased,
but continued to be moderate. Contacts expected that wage and benefit
increases this year would not exceed inflation. However, a shortage of
skilled manufacturing workers contributed to upward pressure on wages to
attract qualified candidates as well as improved benefit packages to
retain current employees.
Agriculture
Unseasonably warm weather has jumpstarted field work and corn
planting in the District. There were reports of tight supplies of some
agricultural chemicals, as well as some types of corn seed. Most of the
District has sufficient moisture for a strong start to the corn crop.
With spring planting taking place up to a month early, some corn will be
harvested in August; combined with the potential of a record corn crop,
concerns about corn stocks being low before the traditional harvest time
diminished and corn prices moved lower. Soybean prices have risen in
response to lower-than-expected harvests in South America. The increase
in soybean prices relative to corn prices, as well as some acreage being
removed from environmental protection restrictions, resulted in an
increase in the number of acres that famers expect to plant in soybeans.
Milk and hog prices decreased, while cattle prices continued to rise
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** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,M$U$$$,MMUFE$,MGU$$$,MFU$$$]
