Beige Book Summary: 11 Districts See Modest To Moderate Growth-Text>

--Report Prepared by the Atlanta Federal Reserve Bank

--Responses Collected Through January 8, 2018

     WASHINGTON (MNI) - The following is the overall summary of the 

Federal Reserve's report on Current Economic Conditions, known as The 

Beige Book, released Wednesday: 

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.                       

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

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