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14 Jan 2015
Beige book: Faster Growth expected
FXStreet (San Francisco) - The Federal Reserve expects 'somewhat faster growth over the coming months' according to its Beige Book about the current situation of the 12 Federal Reserve Districts.
Overall, the economic activity in the United States expanded in November and December while energy related items weakened.
According to the release, most districts reported a 'modest' or 'moderate' pace of growth. Consumer spending increased in most Districts, with generally modest year-over-year gains in retail sales.
Several districts expressed concern about the effect of lower oil prices on the District economy.
Labor market improved moderately across the US; however, 'significant wage pressures continued to be limited largely to workers with particular technical
skills'.
Key quotes:
Economic activity continued to expand during the reporting period of mid-November through late December, with most Districts reporting a “modest” or “moderate” pace of growth. In contrast, the Kansas City District reported only slight growth in December.
Most of their contacts, along with those of several other Districts, expect somewhat faster growth over the coming months.
Consumer spending increased in most Districts, with generally modest year-over-year gains in retail sales.
The pace of growth of demand for nonfinancial services varied widely across Districts and across sectors, but appeared to be moderate on balance. Manufacturing activity expanded in most Districts.
Payrolls in a variety of sectors expanded moderately during the reporting period. Significant wage pressures were largely limited to workers with specialized technical skills. Prices increased slightly, on balance, in most Districts.
Overall, the economic activity in the United States expanded in November and December while energy related items weakened.
According to the release, most districts reported a 'modest' or 'moderate' pace of growth. Consumer spending increased in most Districts, with generally modest year-over-year gains in retail sales.
Several districts expressed concern about the effect of lower oil prices on the District economy.
Labor market improved moderately across the US; however, 'significant wage pressures continued to be limited largely to workers with particular technical
skills'.
Key quotes:
Economic activity continued to expand during the reporting period of mid-November through late December, with most Districts reporting a “modest” or “moderate” pace of growth. In contrast, the Kansas City District reported only slight growth in December.
Most of their contacts, along with those of several other Districts, expect somewhat faster growth over the coming months.
Consumer spending increased in most Districts, with generally modest year-over-year gains in retail sales.
The pace of growth of demand for nonfinancial services varied widely across Districts and across sectors, but appeared to be moderate on balance. Manufacturing activity expanded in most Districts.
Payrolls in a variety of sectors expanded moderately during the reporting period. Significant wage pressures were largely limited to workers with specialized technical skills. Prices increased slightly, on balance, in most Districts.