Fed Beige Book: growth continued in most districts at a “modest to moderate” pace - Nomura

Analysts at Nomura noted that the October Beige Book, prepared for the upcoming 7-8 November FOMC meeting, indicated that growth continued in most districts at a “modest to moderate” pace, slightly below the “moderate” clip from August. 

Key Quotes:

"Trade concerns continued to negatively impact local business contacts as wholesalers and retailers reported some cost pressures from tariffs while manufacturers grapple with higher metal prices (due to tariffs) by raising selling prices.

Overall, concerns about tariffs showed up frequently in throughout the report. Labor shortages continued to affect businesses, either resulting in increased benefits/wages or restraining growth, similar to recent Beige Book commentary.

The pace of price increases overall in September appeared unchanged from August at “modest to moderate.”

Overall, the October Beige Book appears consistent with healthy incoming data and economic activity.

However, the anecdotal evidence from businesses suggests acute concerns regarding US trade policy."