MNI POLICY: Fed Beige Book: Most Districts Saw Modest Growth>

--Key Things We Learned From The Sept. 4 Beige Book

By Evan Ryser 

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

pace through August as tariffs and general trade uncertainty continued 

to weigh and overall manufacturing activity weakened slightly from the 

previous report, 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 Atlanta Fed based on information gathered through 

Aug. 23: 

     - Most Fed districts reported slight to modest growth. The Atlanta 

district saw a moderation in growth, reporting softer manufacturing 

activity. Two Fed districts, Cleveland and Minneapolis, reported flat 

growth as manufacturing slowed. 

     - The impact of tariffs on pricing were mixed with some districts 

anticipating that the effects would not be felt for months, the report 

said. Most districts indicated modest price increased since the last 

report. However, many manufacturers and some other businesses reported 

delaying making investment decisions due to trade uncertainty. 

     - Price increases were modest overall with retailers and 

manufacturers reporting slight increases in input costs. Manufacturing 

reported a limited ability to raise prices putting pressure on growth, 

while other firms noted an ability to pass along price increases. 

     - Labor markets stayed tight with the pace of wage growth staying 

at a "modest to moderate" level throughout the country. Several 

districts cited tight labor markets across segments and skill levels 

constraining overall business activity. Labor shortages limited business 

expansion in some areas. 

     - Consumer spending reports were mixed, though auto sales for most 

districts grew at a modest pace, on par with the previous reporting 

period. Tourism remained solid in most reporting districts. Housing 

sales were constrained by a lack of inventory while new home 

construction remained flat. 

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

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