**MNI 5 THINGS: Outlook Positive Despite Tariffs-Fed Survey>

--5 Things We Learned from the Fed's Beige Book 

--Current Conditions Survey Released Ahead of May 1-2 FOMC Meeting 

By Jean Yung

     WASHINGTON (MNI) - The following are the key points from the 

Beige Book on current economic conditions, compiled by the Federal 

Reserve Bank of Dallas through April 9: 

     -Business contacts reported prices increasing in all districts 

generally at a "moderate" pace, an indication of continued price 

pressures across the economy. The new tariff on steel imports led 

quickly to price hikes, "sometimes dramatically," as some firms tried to 

stockpile the metal in anticipation of higher prices in the months 

ahead. Prices for building materials also continued to rise. These 

higher prices were feeding through to some customers, and prompted some 

steel and aluminum manufacturers in the St. Louis Fed region to reopen 

facilities and call back workers, firms said. 

     -Despite the uncertainty over whether the Trump administration may 

set off a retaliatory trade war with China, firms generally said they 

maintained a positive outlook based on high consumer sentiment and 

increased activity. "Notwithstanding a few manufacturers concerns about 

tariffs, outlooks remained generally positive," the survey said.  

     -Labor markets across the country stayed tight. Firms said it was 

difficult to find qualified candidates, resulting at times in labor 

shortages especially in high skill positions. "Upward wage pressures 

persisted but generally did not escalate; most Districts reported wage 

growth as only modest," the Beige Book said. 

     -Economic activity expanded at a modest to moderate pace across all 

12 Fed districts in March and early April. Consumer spending rose in 

most districts but auto sales were mixed. Loan demand increased. 

     -A shortage of labor and materials continued to constrain the 

construction sector even as building activity expanded. Low inventories 

continued to plague the residential real estate market, dragging down 

sales, while conditions in commercial real estate improved further, the 

Beige Book said. 

     ** MNI Washington Bureau: 202-371-2121 ** 

[TOPICS: MAUDS$,M$U$$$,MAUDR$,MT$$$$,MMUFE$]