2017.10.1901:34:00UTC+00Fed’s Beige Book: U.S. Economy Expands Despite Hurricanes

A report from the U.S. Federal Reserve showed that the economic activity across the country continued to expand at a measured rate in September and October despite devastations by a recent string of hurricanes in the Southern and Eastern U.S.

The Fed's Beige book economic report, which is derived from anecdotal data collected by 12 regional Fed banks, said economic activity increased despite “major disruptions" on areas that were hit by hurricanes Harvey and Irma. But it noted that price pressures were still “modest".

The rate of growth was divided between moderate and modest among the 12 districts, according to the central bank. Expansion occurred alongside Richmond, Atlanta, and Dallas districts posting major disruptions from the catastrophes that hit their areas. Dallas saw an increase in auto sales due to storm-damaged automobiles, while Richmon saw an increase in manufacturing prices, especially in some raw materials.

Meanwhile, the report also said labor markets were widely described as tight and employee shortages in particular sectors were also curbing business growth. Despite these tightening conditions, majority of districts posted only modest to moderate wage pressures.

The demand for workers have caused employers to offer new perks and incentives to attract new hires and keep their current staff, explaining why there is still no growth in overall inflation, as firms remain reluctant to pass the higher costs to consumers.