MNI POLICY: Fed Beige Book: Economic Activity Continued Modestly>

 --Key Things We Learned From The Jan. 15 Beige Book

By Evan Ryser 

     WASHINGTON (MNI) - U.S. economic activity continued at a modest 

pace through December with near-term expectations modestly favorable 

across the nation despite tariffs and general trade uncertainty that 

continue to weigh, according to the Federal Reserve's latest report on 

Current Economic Conditions. 

     Here are some key points from the report known as the Beige Book, 

as compiled by the New York Fed based on information gathered through 

January 6: 

     - Most Fed districts reported modest to moderate growth. The 

Dallas and Richmond Districts noted above-average growth, while 

Philadelphia, St. Louis, and Kansas City reported sub-par growth. 

     - In many Districts, tariffs and trade uncertainty continued to 

weigh on some businesses. In Richmond, it was reported that 

manufacturing slowed slightly as tariff and trade policy 

uncertaintes continnued. Chicago however reported prospects for a trade 

deal with China boosted farmers' outlooks. 

     - Price increases were modest during the reporting period. Retail 

selling prices rose at a slightly faster, although still subdued, pace. 

Some businesses reported passing along tariff costs to consumers-mostly 

in retail but also in construction. Scattered reports of declining 

prices in some manufacturing industries. 

     -  Employment was steady to rising modestly in most districts while 

labor markets remained tight throught the nation. Most districts cited 

widespread labor shortages as a facotr constraining growth. 

     - Consumer spedning grew at a modest to moderate pace, with a 

number of Districts noting some pickup from the prior period. On 

balance, holiday sales were said to be solid, with several Districts 

noting the growing importance of online shopping. Vehicle sales 

generally expanded moderately. 

     ** MNI Washington Bureau: 202-371-2121 

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