Most Federal Reserve districts reported modest or moderate economic growth in recent weeks, though four regions said growth had slowed or was “slight,” a survey from the U.S. central bank showed.
“Most Districts reported that firms remained positive; however, optimism has waned in some as contacts cited increased uncertainty from impacts of tariffs, rising interest rates, and labor market constraints,” according to the report, released Wednesday in Washington.
The central bank’s Beige Book economic report, based on anecdotal information collected by the 12 regional Fed banks through Nov. 26, said labor markets further tightened.
“Over half of the Districts cited firms for which employment, production, and sometimes capacity expansion had been constrained by an inability to attract and retain qualified workers,” the report said.
“Partly as a consequence of labor shortages, most Districts reported that employment growth leaned to the slower side of a modest to moderate pace,” the report said. “Conversely, most Districts reported that wage growth tended to the higher side of a modest to moderate pace.”
Prepared by the Philadelphia Fed, the report will be reviewed by policy makers as they prepare for their Dec. 18-19 meeting when they are expected to raise interest rates by a quarter percentage point for the fourth time this year.
