Fed says economy growing a bit faster
WASHINGTON — U.S. economic growth picked up a bit as summer ended and fall began, supported by modest hiring, an uptick in consumer spending and steady homebuilding, according to the Federal Reserve.
The Fed’s “Beige Book” survey of economic conditions in its 12 regional bank districts, released Wednesday, found that growth was modest or moderate in most districts such as Dallas, which includes the Houston area.
The mild improvement could encourage Fed policymakers to lift short-term interest rates by their December meeting.
Hiring was steady across most of the country, though the Dallas district noted a shortage of construction workers, which in some cases constrained building activity. Steady job gains lifted wages in most districts.
The Beige Book’s broad picture of a modestly improving economy is consistent with most economists’ estimates that growth will quicken in the JulySeptember quarter. The economy will likely grow at a roughly 2 percent to 2.5 percent annual pace, most analysts forecast. That would be up from a tepid 1.1 percent pace in the first half of the year.
The report will be considered at the Fed’s next meeting Nov. 1-2. Most analysts expect the Fed to stand pat next month and wait to make any moves until after the elections.
The survey found that employers reported offering higher pay for many skilled workers in industries such as construction, manufacturing, health care and information technology.
But similar pressures also appeared in lowerskilled industries: Retailers and tourism operators in New England were forced to raise wages to attract workers, the Boston district said.
On Wall Street, oil and gas exploration companies led U.S. stocks modestly higher, giving the market its second straight gain.