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

--Report Prepared by the Minneapolis Fed Bank

--Data Collected On Or Before Oct. 6

     WASHINGTON (MNI) - The following is an excerpt from the summary of 

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

The Beige Book, released Wednesday: 

Overall Economic Activity 

     Reports from 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 Richmond, Atlanta, 

and Dallas Districts reported major disruptions from Hurricanes Harvey 

and Irma in some areas and sectors, including transportation, energy, 

and agriculture. 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. 

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. Loan 

demand was generally stable to modestly higher. Growth in the energy 

sector eased slightly. Agricultural conditions were mixed; while some 

regions were reporting better-than-expected harvests, low commodity 

prices continued to weigh down farm incomes. 

Employment and Wages

     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. Growing use of sign-on bonuses, 

overtime, and other nonwage efforts to attract and retain workers were 

also reported. 

Prices 

     Price pressures remained modest since the previous report. Several 

Districts noted increased manufacturing input costs, but in most cases 

these werent 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. 

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

holly.stokes@marketnews.com                            

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