Fed's Beige Book: Employment increased in almost all districts, growth remained slow
|The Federal Reserve released the beige book report on the US Economic activity stating that employment increased in almost all districts, though growth remained slow.
Additionally, it states that the economic activity continued to increase across all districts, with pace of growth characterized as slight to modest in most.
Key notes
''Changes in activity varied greatly by sector.
Employment gains were reported most consistently for manufacturing firms, although firms continued to report new furloughs and layoffs.
Most districts continued reporting tight labor markets, attributing it to workers' health and childcare concerns.
A few districts, however, noted some firms were finding it easier to hire workers.
Manufacturing activity generally increased at a moderate pace; residential housing markets continued to experience steady demand.
Commercial real estate conditions continued to deteriorate in many districts.
Wages increased slightly in most districts, often tied to firms' difficulty finding workers, especially for low-wage or high-demand jobs.
Consumer spending growth remained positive and some districts reported a leveling off of retail sales and a slight uptick in tourism activity.
Prices rose modestly across districts since the previous report.
Demand for autos remained steady, reports on agriculture conditions were mixed.
Districts characterized the outlooks of contacts as generally optimistic or positive, but with a considerable degree of uncertainty.
Restaurateurs in many districts expressed concern that cooler weather would slow sales.
Input costs generally increased faster than consumer prices.
Banking contacts in many districts expressed concern that delinquency rates may rise in coming months.
Overall, consumer prices across districts rose modestly, with the notable exceptions of food, automobiles, and appliances, which increased significantly.
Multiple districts reported continued additional costs for firms due to COVID.''
Market implications
Stocks and the dollar were unchanged on the release as the markets focus on stimulus talks and progress towards a financial aid package for the nation.
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