US Fed beige book says economic activity increased
March 15, 2006 14:02:44 (ET)
WASHINGTON, March 15 (Reuters) - U.S. economic activity increased across the country in January and February, with businesses feeling continued input cost pressures, the Federal Reserve said on Wednesday.
"Most districts characterized the pace of expansion as moderate or steady," the U.S. central bank said in its "beige book" summary of economic conditions.
Businesses reported input cost pressures, with elevated energy costs frequently mentioned, the Fed said. The costs of non-petroleum materials, including asphalt and cement, were on also the rise, the Fed said.
However, retail prices increased at only a moderate rate, the report said, and labor cost pressures were little changed, with most districts saying wages increased modestly on average.
Employment increased in most locations and many sectors of the economy, and almost every district reported shortages of high-skilled workers.
A shortage of skilled workers in finance, construction and manufacturing resulted in more rapid pay raises for those workers.
Residential construction and real estate was mixed, with most districts reporting activity slowing from high levels. At the same time, commercial construction and real estate has picked up from the end of 2005, the Fed said. |
