Highlights of the Beige Book released March 1, 2017:
- Prior Beige Book saw modest pace
- Businesses were generally optimistic about near-term outlook though not as optimistic as in the last survey
- Consumer spending expanded modestly and retail sales sudued
- Most districts saw moderate growth in manufacturing
- A few districts saw a pickup in wage growth
- A number of districts noted a shortage of skilled labor
- Pricing pressures were little changed
- Data collected up to Feb 17, prepared by New York Fed
- Full text
Here is the full assessment on employment and wages, which is the key input for the Fed at the moment:
"Labor markets remained tight in early 2017, with some Districts noting widening labor shortages. Employment grew moderately in most of the nation, though three Districts characterized growth as modest and two reported that it was little changed. A number of Districts noted that staffing firms were seeing brisk business for this time of year, and one noted more conversions from temporary to permanent workers. In general, wages in most Districts rose modestly or moderately, with a few reporting some pickup in the pace of wage growth. A number of Districts noted that shortages of skilled workers--particularly engineers and IT workers--were driving up their wages, and there were also some reports of labor shortages in the leisure and hospitality, construction and manufacturing industries."
It's not much but the Beige Book points in the same direction as the latest Fed commentary -- higher rates. It's not the same kind of strong statement as Dudley or Williams yesterday but it keeps the positive assessment intact and March in play.
