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REPEAT: MNI POLICY: US Economy Slowed in November - Beige Book

Repeats Story Initially Transmitted at 19:43 GMT Dec 5/14:43 EST Dec 5
By Jean Yung
     WASHINGTON (MNI) - Growing uncertainty over trade policy, rising interest
rates and labor shortages weighed on the U.S. economy in November as growth
slowed in parts of the country, the latest Federal Reserve report on Current
Economic Conditions said Wednesday. 
     The following are the top takeaways from the Fed's latest Beige Book, an
anecdotal report of economic activity officials use in preparing for the
upcoming Federal Open Market Committee meeting. It was prepared by the
Philadelphia Fed with information collected before Nov. 26. 
     --Most of the 12 Fed districts expanded at a modest or moderate pace from
mid-October through late November. The districts of Dallas and Philadelphia
noted slower growth while St. Louis and Kansas City noted just slight growth.
Consumer spending held steady but new home construction and existing home sales
tended to decline or hold steady, while construction and leasing of
nonresidential structures tended to rise or remain flat. 
     --Tariffs remained a concern for manufacturers, but a majority of districts
continued to report moderate growth in the sector. Overall, firms cited
"increased uncertainty from impacts of tariffs, rising interest rates, and labor
market constraints" as reasons why their optimism had waned slightly through
November. A number of firms noted that rising interest rates was eroding the
affordability of housing even as home prices continued to climb. 
     --Inflation remained modest in most areas with just a few Fed districts
noting moderate price increases. Nearly all reported that input costs rose
faster than final goods prices. Tariff-induced cost increases spread more
broadly from manufacturers and contractors to retailers and restaurants, the Fed
reported. 
     --The labor market tightened further as more than half of the Fed districts
said worker shortages constrained their businesses. Most districts reported that
wage growth "tended to the higher side of a modest to moderate pace." 
--MNI Washington Bureau; +1 202-371-2121; email: jean.yung@marketnews.com

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