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November 30, 2005
Beige Book
The Beige Book is out. Follow the link to read the details. Yes, the news is mostly good, but if you read closely, it's not unambiguously so. Conditions are not uniformly good throughout the country, but that might be hard to achieve in the best of times. But where there are soft spots, they are for a specific reason. Case in point,
The Dallas District provided the only indication of lower wage pressures--for the airline industry.
On prices,
Consumer prices remained stable or experienced generally modest increases, but most Districts reported increasing input prices, particularly of energy-related products, construction and raw materials, and transportation. Fuel surcharges have become common in many Districts. In response to higher input prices, some businesses in the New York, Philadelphia, and Richmond Districts were able to pass along a portion of increased costs to consumers. Retail prices in the Boston District remained stable but had risen modestly in the Cleveland, Richmond, Chicago, and Kansas City Districts. Competitive pressures in the Atlanta and Dallas Districts have limited the ability to increase selling prices. Some manufacturers in the Dallas and Minneapolis Districts, however, plan to raise prices in 2006.
On Manufacturing,
Manufacturing activity increased in all Federal Reserve Districts except St. Louis, where activity was mixed.
Real estate is moderating, and labor markets are improving. But the auto sector is not as hot.
With all that good news, all eyes will be on the employment report. If it doesn't hit 200,000 we'll all be scratching our heads over the weekend trying to figure out what to believe.
Posted by William Polley at November 30, 2005 5:16 PM
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