Beige Book: Highlights By Federal Reserve District - Text>

--Report Prepared by the Atlanta Federal Reserve Bank

--5 Districts Report Modest, 6 Districts Moderate, 1 Robust

     WASHINGTON (MNI) - The following are the highlights by district in 

the summary of the Federal Reserve's report on Current Economic 

Conditions, known as The Beige Book, released Wednesday: 

Boston

     Economic activity expanded at a modest pace as 2017 ended, with the 

majority of contacts at manufacturing, retail, and software and 

information technology firms reporting revenue increases even as some 

saw flat or declining revenue. Employers cited tight labor markets as a 

constraint on expansion. Respondents outlooks continued to be positive. 

New York

     Economic activity continued to expand moderately, while labor 

markets have remained tight. Input prices have increased at a somewhat 

faster pace, while selling prices continued to rise modestly. Housing 

markets and commercial real estate markets have been mixed but generally 

steady overall. 

Philadelphia

     Economic activity continued to grow at a modest pace, in particular 

for manufacturing, nonfinancial services, and tourism. Nonauto retail 

sales improved to a modest pace as auto sales slipped to a modest 

decline. The construction and real estate sectors changed little. On 

balance, employment, wages, and prices continued to grow modestly. 

Cleveland

     The economy continued to expand at a moderate pace. Labor markets 

tightened, with wage pressures coming primarily from workers in low- and 

middle-skills jobs. Retailers reported higher-than-expected revenues for 

the early part of the holiday shopping season. Homebuilders saw little 

evidence of a seasonal downturn in the housing market. 

Richmond

     The regional economy grew at a moderate pace in recent weeks. 

Robust growth was reported by trucking and tourism firms. Retailers 

generally reported better-thanexpected holiday sales. Meanwhile, 

commercial real estate activity and commercial lending improved 

moderately. Labor markets tightened further and wage pressures 

broadened. Price growth remained modest. 

Atlanta

     Economic activity improved modestly since the previous report. The 

labor market remained tight and wage increases were stable. Non-labor 

input costs picked up slightly. Retailers were optimistic when reporting 

on holiday sales. Home sales were mixed and prices increased modestly. 

Commercial real estate contacts continued to indicate improving demand. 

Manufacturers noted an increase in new orders. 

Chicago

     Economic activity picked up to a moderate pace. Employment, 

consumer spending, and manufacturing production increased moderately, 

construction and real estate activity rose slightly, and business 

spending was unchanged. Wages increased modestly, prices rose slightly, 

and financial conditions improved some. Crop and dairy farmers continued 

to face challenging conditions. 

St. Louis

     Economic conditions continued to improve at a modest pace. In 

positive news, retailers reports of holiday sales were generally 

upbeat, and real estate activity has picked up somewhat. However, auto 

dealers continued to report mixed sales results, and agriculture 

conditions in the District remain weak. 

Minneapolis

     Ninth District economic activity grew moderately. Although 

employment levels dipped, hiring demand appeared to remain strong. 

District manufacturers indicated that a solid 2017 would continue, with 

upbeat expectations for the year to come. Holiday retail spending was 

strong, but winter tourism got off to an uneven start. Commercial 

construction increased; homebuilding was mixed, but residential sales 

were up. 

Kansas City

     Economic activity and employment expanded modestly in late November 

and December. Retail sales increased sharply, and consumer spending 

remained well above year-ago levels. The manufacturing and energy 

sectors expanded further, and capital spending plans were positive. A 

majority of contacts in the services sector reported labor shortages, 

and strong wage growth was anticipated in the months ahead. 

Dallas

     Economic activity grew robustly, a pickup in pace from the more 

moderate expansion seen throughout most of 2017. The manufacturing 

sector remained a bright spot, although growth accelerated in most other 

sectors as well. Employment growth picked up, and wage and price 

pressures remained elevated. Labor shortages persisted, with several 

reports that difficulty hiring was impeding growth to some extent. 

San Francisco

     Economic activity in the Twelfth District continued to expand at a 

moderate pace. Sales of retail goods picked up noticeably, and growth in 

the consumer and business services sectors remained strong. Conditions 

in the manufacturing sector remained solid. Activity in residential real 

estate markets remained robust, while conditions in the commercial 

sector were strong. Lending activity grew at a modest pace. 

--MNI Washington Bureau;tel: +1 202 371-2121

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