Federal Hall and George Washington statue, NYC, Photo Musik Animal/ Wikimedia Commons
The U.S. economy grew at a pace split between modest and moderate during September and early October while some areas reported major disruptions ffrom Hurricanes Harvey and Irma in various sectors.
According to Federal Reserves’ Beige Book report, all 12 Federal Reserve Districts indicated that “economic activity increased in September through early October, with the pace of growth split between modest and moderate.”
The survey, based on anecdotal information from all districts, finds that the Richmond, Atlanta, and Dallas Districts reported major disruptions from Hurricanes Harvey and Irma in some areas and sectors, including transportation, energy, and agriculture.
The Beige Book, a Federal Reserve System publication about current economic conditions across the 12 districts, says manufacturing activity and nonfinancial services expanded modestly to moderately in most Districts.
Retail spending rose slowly, while vehicle sales and tourism increased in most Districts, the survey says.
Among other sectors of the economy, residential construction continued to increase, and growth in commercial construction was up slightly on balance. Low home inventory levels continued to constrain residential sales in many areas, while nonresidential real estate activity increased slightly overall.
The survey found oan demand to be generally stable to modestly higher.
In the energy sector eased slightly while agricultural conditions presented a mixed scenario with some regions were reporting better-than-expected harvests, low commodity prices continued to weigh down farm incomes.
The report says employment growth was modest on balance, with most Districts reporting flat to moderate increases.
“Labor markets were widely described as tight. Many Districts noted that employers were having difficulty finding qualified workers, particularly in construction, transportation, skilled manufacturing, and some health care and service positions.
“These shortages were also restraining business growth. Firms in several Districts reported that scarcity of labor, particularly related to construction, would be exacerbated by hurricane recovery efforts.
“Despite widespread labor tightness, the majority of Districts reported only modest to moderate wage pressures. However, some Districts reported stronger wage pressures in certain sectors, including transportation and construction.
According to the report growing use of sign-on bonuses, overtime, and other nonwage efforts to attract and retain workers were also reported.
Price pressures remained modest since the previous report. Several Districts noted increased manufacturing input costs, but in most cases these weren’t passed through to selling prices. Retail prices generally increased slightly.
Transportation, energy, and construction materials prices increased more rapidly, with some Districts citing effects from hurricanes.
According to Feds, the report Beige Report characterizes regional economic conditions and prospects based on a variety of mostly qualitative information, gathered directly from District sources.
The Central Bank says the qualitative nature of the Beige Book creates an opportunity to characterize dynamics and identify emerging trends in the economy that may not be readily apparent in the available economic data.
