The Federal Reserve reports the United States economy experienced a modest expansion from the month of October to a point in mid-November. The report by the reserve also declares the outlook for further growth positive despite the fact the job markets remain tight.
The Reserve used its conversations with a number of business contacts located throughout the United States to provide the diagnosis of the economy. The report also advises there has been a general increase in prices.
“The Beige Report” paints an outlook for the economy that is generally positive with the expectation that the growth experienced recently will continue into the next year.
A number of federal districts reported job growth in fields like health care and tech services. There were mixed results for the manufacturing sector with districts reporting a range of outcomes that include rising employment rolls, stagnation, and job deficits.
Employment is on the rise despite the fact employers report not being able to fill the positions they need. Employers also report the shortage of employees has negatively affected job growth.
One example of the climate for employers comes from two New York City job agencies. The agencies reported that all suitable clients are already employed and have no desire to change jobs at this time.
The Agriculture sector suffered from weather conditions and low prices for crops. Farmers in the Richmond District are reluctant to invest money and resources into equipment or land due to the current conditions.
Farmers in the Atlanta district also report being affected by drought conditions.
The trade war that is being waged between the United States and China is now in its 16th month and has damaged both economies. Firms in many sectors in America, including manufacturing, have hesitated to make decisions pertaining to growth and expansion due to uncertain market conditions brought on by the trade war.
The Reserve reports that many of their contacts in the business sector say they have been hampered by the rising prices that have been caused by the tariff war.
The Beige Book reports a shortage of labor has greatly affected the restaurant industry. Restaurants in Minneapolis report decreasing hours of operation due to staff shortages. In Southern California, restaurant owners have been forced out of business due to an inability to adequately staff their businesses.
The information in the Beige Report was collected on or before the 18th of November by the Dallas Fed.