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

--Report Prepared by the Dallas Federal Reserve Bank

     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 

     Economic activity continued to expand at a modest to moderate pace 

across the 12 Federal Reserve Districts in March and early April. 

Outlooks remained positive, but contacts in various sectors including 

manufacturing, agriculture, and transportation expressed concern about 

the newly imposed and/or proposed tariffs. Consumer spending rose in 

most regions, with gains noted for nonauto retail sales and tourism, but 

mixed results for vehicle sales. Manufacturing activity grew moderately, 

and demand for nonfinancial services was mostly solid. Residential 

construction and real estate activity expanded further, although low 

home inventories continued to constrain sales in several Districts. Loan 

demand increased, and commercial real estate activity and construction 

improved since the last report. Transportation services activity 

expanded in over half of the reporting Districts, buoyed by increases in 

port traffic and/or air, rail and/or trucking shipments. Agricultural 

conditions were little changed or worsened on net, in part due to 

persistent drought conditions. Contacts in the energy sector cited a 

pickup in activity, except in the Richmond District, where coal 

production was flat and natural gas production dipped slightly. 

Employment and Wages 

     Widespread employment growth continued, with most Districts 

characterizing growth as modest to moderate. Labor markets across the 

country remained tight, restraining job gains in some regions. Contacts 

continued to note difficulty finding qualified candidates across a broad 

array of industries and skill levels. Reports of labor shortages over 

the reporting period were most often cited in high-skill positions, 

including engineering, information technology, and health care, as well 

as in construction and transportation. Businesses were responding to 

labor shortages in a variety of ways, from raising pay to enhancing 

training to increasing their use of overtime and/or automation, among 

other strategies. Upward wage pressures persisted but generally did not 

escalate; most Districts reported wage growth as only modest. 

Prices

     Prices increased across all Districts, generally at a moderate 

pace. There were widespread reports that steel prices rose, sometimes 

dramatically, due to the new tariff. Prices for building materials 

continued to rise briskly, especially for lumber, drywall, and concrete. 

Transportation costs also generally rose, with contacts citing higher 

fuel prices and shortages of truck drivers as the primary causes. There 

were scattered reports of companies successfully passing through price 

increases to customers in manufacturing, information technology, 

transportation, and construction. Businesses generally anticipate 

further price increases in the months ahead, particularly for steel and 

building materials. 

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

[TOPICS: MMUFE$,M$U$$$]