Economic activity rose modestly in September and October led by the manufacturing sector, the Federal Reserve reported Wednesday in its Beige Book of economic activity.
Manufacturing firms reported new orders and production increases. Only the Philadelphia and Richmond districts said manufacturing activity softened.
The districts reported minimal wage increases. Widespread reports said firms are expecting employee benefit costs to increase as a result of healthcare reform. However, a healthcare consulting firm in the Boston district reported rising revenues based on healthcare reform business.
Firms also reported limited employment growth. Businesses are reluctant to add permanent workers amid current economic conditions, the report said.
The report was prepared by the Federal Reserve Bank of Dallas based on information collected through Oct. 8.
Last month, some districts reported “widespread signs of deceleration” in the Beige Book.
