Beige Book Reports 'Modest' Expansion

The economy expanded at a "modest" pace in most regions in the last half of November and December, according to the Beige Book, released by the Federal Reserve Wednesday.

"Manufacturers in most Districts reported increased sales with several citing a turnaround versus earlier in 2016," according to the report. "Growth in the energy industry was mixed; two Districts reported weakness in coal production but others reported improvements in coal, oil, or gas activity."

While sales, excluding autos, were better in most districts, holiday sales were termed "disappointing" by several districts.

"All Districts reported varying degrees of growth in employment and a majority described their labor markets as tight," the report said. "Financial conditions were stable. Firms across the country and industries were said to be optimistic about growth in 2017."

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