WASHINGTON—All Federal Reserve districts reported at least modest economic growth through the end of 2017, with the Dallas Fed district recording a "robust" increase, according to the latest Federal Reserve Beige Book data.
The Fed continues to be optimistic about 2018's economic outlook, noted NAFCU Vice President of Research and Chief Economist Curt Long.
"Consumer spending is strengthening and, with it, the prospects for the economy to finally heat up," said Long. "Growth is still unlikely to reach long-run historical norms, but a sustained period of even 3% growth has proven elusive during the recovery.
"If the economy does achieve even a modest breakthrough, it would likely bring with it stronger inflation, which would have the Fed poised to meet or exceed its forecast of three rate hikes over the course of the year," Long added.
In addition to a national summary of economic conditions, the report breaks down each of the 12 districts' conditions.
Of note from the Fed Beige Book:
- The districts reported little growth in home sales due to limited housing inventory
- Holiday sales were higher than expected for some retailers and most districts reported that non-auto retail sales expanded in December
- Most districts cited ongoing labor market tightness and challenges finding qualified workers across skills and sectors
- Wages increased at a modest pace in most districts and some reported that firms expect wages to increase in the months