Highlights of the Fed's anecdotal survey of economic conditions:
- US economy grew at 'modest pace'
- Data collected before Nov 25
- Wage pressures "generally stable to increasing"
- Employers in several districts reported difficulty finding skilled workers, some said difficulty spreading to lower-skilled and entry-level workers
- Consumer spending increased in nearly all districts
- Sales of light vehicles remained robust
- Manufacturing sector was mixed; exports continued to fall on strong dollar and weak global demand
- Manufacturers in most districts looked for slightly improved business conditions in next six months
- Housing market improved at moderate pace
- Loan demand increased in most districts
- Full text of the Beige Book
The headline might not be what it seems. " Many Districts indicated that increased hiring was driven by temporary and entry-level positions that were being fulfilled by staffing firms," is what the Beige Book said.
Hiring by temp agencies may show that it's not a sustainable pickup in employment and the big gains in October might have been a mirage that disappears after Christmas. You could also argue that it's a precursor to full-time hires and further down in the Beige Book it said "the rate of temporary-to-permanent job conversion remains strong.
Searching through the text for comments on inflation, there isn't much concern.
