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

--Key Things We Learned From The Nov. 27 Beige Book

By Evan Ryser 

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

pace through early Nov. as tariffs and general trade uncertainty 

continued to weigh. Most districts saw moderately growing 

consumer spending and auto sales, while manufacturing activity expanded 

in some areas while a majority continued to experience no growth, 

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 Dallas Fed based on information gathered through 

Nov. 18: 

     - Most Fed districts reported modest to moderate growth. The 

Chicago district saw slight growth, while St. Louis, Kansas City, 

and New York saw no growth. 

     - The impact of tariffs weighed, as retailers mentioned higher 

costs and some districts noted that campanies affected by the tariffs 

were more inclined to pass on cost increases. The St. Louis district 

saw contacts note a heightened sense of economic uncertainty while the 

Boston district saw retailers concerned about tariffs impacts on sales. 

     - Prices rose at a modest pace, with reports of deceleration in 

prices in some areas and higher costs in the retail sector. Some 

districts reported less anticipation of higher prices among 

manufacturers.  

     - Labor markets remained tight and employment continued to rise 

slightly overall. Severall districts noted relatively strong job gains 

and reports were mixed for employment in manufacturing. The Fed notes 

"scattered reports of labor reductions in retail and wholesale trade." 

Majority of districts continue to see difficulty hiring due to tight 

labor markets and a lack of qualified applicants.  

     - Consumer spending reports were mixed. Chicago district saw 

consumer spending increase slightly with decreased auto sales, the 

Boston district saw gains in the retail sector with optimistism for 

sales in the holiday season, and Kansas City saw cosumer spending edge 

down while optimism persisted for the upcoming holiday season.  

     ** MNI Washington Bureau: 202-371-2121 

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