According to a report released by the Federal Reserve, the United States economy continues to grow while having tight labor markets. The "Summary of Commentary on Current Economic Conditions", better known as the Fed's "Beige Book" is based on reports from banks and branch directors and conversations with businessmen, economists, market experts and other sources from all the Fed districts.
The "Beige Book", which is usually published ahead of the Federal Open Market Committee meetings, provides the Federal Reserve officials enough information that helps to shape their policy stance on monetary and economic matters. The recently-released survey is based on information that was collected before April 8.
The report, which is published eight times per year, says that the economy grew at a moderate pace in March and the beginning of April in most districts while some of them enjoyed a stronger economic growth. Price growth was modest since the last report was published, mostly due to rising wages, freight costs, and tariffs.
The U.S. government shutdown was technically absent from the report, and the San Francisco Fed reported an increase in retail sales (beating analyst expectations), while the Richmond Fed stated that local businesses are coming back to normal according to some federal contractors.
The report also highlighted a shortage of skilled workers mostly in construction and manufacturing but also on technical and professional roles. These influenced wages, which were reported as rising moderately across all the Federal Reserve districts, excluding three districts where the growth was rather slight but still measurable. Both unskilled and skilled workers enjoyed wage increases.
Retailers and auto dealers reported a slower sales pace while tourism and home sales reported a strong sales growth. The surveyed contacts from the manufacturing sector expressed that trade uncertainty is affecting their activity. Conversely, several Fed districts reported that weather conditions are affecting agricultural production, specifically in the Midwest.