Fed's Beige Book: Prices rose moderately in most Districts

The Federal has recently published its highly-anticipated Beige Book, providing the key takeaways found below.

• Economic activity expanded moderately in late April and early May with few shifts in the pattern of growth. 
•  Manufacturing shifted into higher gear with more than half of the Districts reporting a pickup in industrial activity and a third of the Districts classifying activity as “strong.” 
• Employment rose at a modest to moderate rate across most Districts.
• Labor market conditions remained tight across the country, and contacts continued to report difficulty filling positions across skill levels. 
• Many firms responded to talent shortages by increasing wages as well as the generosity of their compensation packages.
• Prices rose moderately in most Districts, while the remainder reported slight or modest increases. 
•  A few Districts noted that these reports of rising materials costs were becoming more common across contacts.
• Input cost increases, along with labor shortages in some sectors and strengthening demand, put upward pressure on prices in the transportation, construction, and manufacturing sectors.