*DJ Fed Beige Book:US Econ Kept Expanding Mid-Oct To Mid-Nov
*DJ Beige Bk: Hiring Activity Up, Some Labor Mkt Tightening
*DJ Beige Bk: Districts Cite Modest Upward Pressure On Wages
*DJ Beige Bk: Most Cite 'Persistent' Input Price Pressures
*DJ Beige Bk:Some Firms Passing Higher Costs On To Consumers
*DJ Beige Bk: Most Regions Worried About High Energy Prices
*DJ Beige Bk: Many Districts Report Housing Activity Slowing
*DJ Beige Bk: Retail Sales, Mfg Activity Up; Auto Sales Cool
DJ Fed Beige Book: US Econ Kept Expanding Mid-Oct To Mid-Nov
By Deborah Lagomarsino
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--The U.S. economy steamed ahead from mid-October to mid-November in most regions of the country as hiring picked up and price pressures intensified, the Federal Reserve said Wednesday.
"Economic activity continued to expand," the Federal Reserve said in its latest Beige Book report.
The economy grew at a "solid" pace or improved in most districts, but conditions were "mixed" in the St. Louis district and the economy "grew slowly" in the Philadelphia district, the Fed said.
Manufacturing activity and retail sales were up in most districts, while housing and auto sales cooled in many districts, the Fed said. Hiring was up in many districts and some regions noted a "slight" tightening in labor markets.
On the inflation front, most districts reported "persistent" input price pressures and concerns about high energy prices and some firms were able to pass on higher costs to consumers, the Fed said.
"Most districts reported increasing input prices, particularly of energy-related products, construction and raw materials, and transportation," the Fed said.
"In response to higher input prices, some businesses in the New York, Philadelphia and Richmond Districts were able to pass along a portion of increased costs to consumers," the Fed said.
The Beige Book is a summary of economic activity prepared for use at the central bank's next Federal Open Market Committee on Dec. 13. The most recent report was prepared by the Federal Reserve Bank of St. Louis and reflects information gathered before Nov. 21.
In its previous Beige Book report Oct. 19, the Fed said the U.S. economy grew at a "moderate or gradual" pace in most parts of the U.S. despite severe damage to the Gulf Coast in the wake of hurricanes Katrina and Rita.
(MORE TO FOLLOW) Dow Jones Newswires
11-30-05 1400ET
Copyright (c) 2005 Dow Jones & Company, Inc.
DJ Fed Beige Book: Econ Kept Expanding Mid-Oct To Mid-Nov -2
Consumer prices "remained stable" or experienced "generally modest increases" even as input prices kept climbing, the Fed said.
The tone of the latest beige book report should reinforce financial market expectations that the Fed will raise rates further next month. The Fed has raised rates by a quarter percentage point at each of its last 12 policy meetings, bringing the federal funds rate to 4%.
As for wages, the beige book cited "modest overall upward pressure," with some districts indicating more substantial upward wage pressures in certain industries.
"The Dallas district provided the only indication of lower wage pressures - for the airline industry," the Fed said. |
