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Fed's Beige Book: Prices rose moderately in most Districts
The Federal has recently published its highly-anticipated Beige Book, providing the key takeaways found below.
- Economic activity expanded moderately in late April and early May with few shifts in the pattern of growth.
- Manufacturing shifted into higher gear with more than half of the Districts reporting a pickup in industrial activity and a third of the Districts classifying activity as “strong.”
- Employment rose at a modest to moderate rate across most Districts.
- Labor market conditions remained tight across the country, and contacts continued to report difficulty filling positions across skill levels.
- Many firms responded to talent shortages by increasing wages as well as the generosity of their compensation packages.
- Prices rose moderately in most Districts, while the remainder reported slight or modest increases.
- A few Districts noted that these reports of rising materials costs were becoming more common across contacts.
- Input cost increases, along with labor shortages in some sectors and strengthening demand, put upward pressure on prices in the transportation, construction, and manufacturing sectors.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
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