Fed Sees ‘Modest’ U.S. Economic Growth

Washington, Safar 21, 1437, December 03, 2015, SPA — Most regions of the United States reported “modest” growth in recent weeks, and the labor market tightened somewhat with some upward pressure on wages as employers found it increasingly difficult to fill jobs, a closely watched report from the Federal Reserve (Fed) said Wednesday.

U.S. economic activity continued to expand at a “modest” pace in most regions from early-October through mid-November, the Fed said in its Beige Book report on business activity collected by its 12 districts.

Overall wage pressures were “generally stable to increasing,” the Fed said, with most districts reporting that wage pressures increased only for skilled occupations and workers in short supply.
Several districts indicated increased hiring was “driven by temporary and entry-level positons that were being fulfilled by staffing firms,” the report said.

According to the report, consumer spending—which accounts for 70 percent of U.S. economic activity—increased in nearly all districts. Manufacturing remained mixed, with exports continuing to decline due to the strong dollar, low commodity prices, and weak global demand. However, manufacturers in most districts said they expected improved business conditions over the next six months.
–SPA
11:55 LOCAL TIME 08:55 GMT