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What did the Fed say? (Report "Beige Book" from 01/16)

The general state of the economy: Growth "moderate" and "very moderate" in 9 Federal Districts out of 13.

Total sales are growing but auto sales have not increased. Most counties report slower growth, especially in the automotive and energy sectors.

Labor market: Most districts mark a strong demand for labor and difficulty finding workers of all qualifications. Salaries are growing for all categories of workers. Some firms are forced to limit their activities due to a shortage of workers (construction sector).

Prices: Dynamics mixed. Costs of companies are growing, but they cannot raise retail prices due to high competition. General prices are rising slightly, but energy prices have decreased, prices for agricultural goods are not growing.

Rising property prices in the private sector.

Note: The beige book Fed report on the state of the US economy is standardly published exactly 14 days before the Fed's decision on rates.

The material has been provided by InstaForex Company - www.instaforex.com