TEXT: Federal Reserve Beige Book Summary Section>

     WASHINGTON (MNI) - The following is the text of the summary section 

of the Federal Reserve's summary of economic conditions report, or Beige 

Book, released Wednesday: 

     Overall Economic Activity 

     Ecconomic activity generally continued to expand modestly in the 

final six weeks of 2019. The Dallas and Richmond Districts noted 

above-average growth, while Philadelphia, St. Louis, and Kansas City 

reported sub-par growth. Consumer spending grew at a modest to moderate

pace, with a number of Districts noting some pickup from the prior 

reporting 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, though a handful of 

Districts reported flat sales. Tourism was mixed, with growth reported 

in the eastern seaboard Districts but activity little changed in the 

Midwest and West. Manufacturing activity was essentially flat in most 

Districts, as in the previous report. Business in nonfinancial services 

was mixed but, on balance, growing modestly. Transportation activity 

was also mixed across Districts, with a majority reporting flat to 

weaker activity. Banks mostly characterized loan volume as steady to 

expanding moderately. Home sales trends varied widely across Districts 

but were flat overall, while residential rental markets strengthened. 

Some Districts pointed to low inventories as restraining home sales. 

New residential construction expanded modestly. Commercial real estate 

activity varied substantially across Districts. Agricultural conditions 

were little changed, as was activity in the energy sector. In many 

Districts, tariffs and trade uncertainty continued to weigh on some 

businesses. Expectations for the near-term outlook remained modestly 

favorable across the nation.

     Employment and Wages 

     Employment was steady to rising modestly in most Districts, while 

labor markets remained tight throughout the nation. Most Districts 

cited widespread labor shortages as a factor constraining job growth, 

and, in a few cases, business expansion. A few Districts noted brisk 

demand for professional, technical, and managerial workers. A number 

of Districts reported job cuts or reduced hiring among manufacturers, 

and there were scattered reports of job cuts in the transportation and 

energy sectors. Wage growth was characterized as modest or moderate in 

most Districtssimilar to the prior reporting periodand there were 

scattered reports of wage increases from year-end hikes in minimum 

wages. A few Districts also noted the use of benefits, incentives, 

training programs, and automation to reduce vacancies. 

     Prices 

     Prices continued to rise at a modest pace during the reporting 

period, as did input costs. A number of Districts reported that retail 

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

few Districts indicated that some businesses were passing along tariff 

costs to consumersmostly in retail but also in construction. Some 

Districts noted that restaurants were being pressured by rising food 

prices. There were scattered reports of declining prices in some

manufacturing industries, as well as in the energy sector. Those 

Districts reporting on price expectations indicated that prices were 

expected to continue to rise in the months ahead.  

     * Prepared at the Federal Reserve Bank of New York based on 

information collected on or before January 6, 2020. 

     ** MNI Washington Bureau (202) 371-2121 

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