Federal Reserve economic report shows growth nationally, with weakness in some agricultural areas

"Labor markets remained tight across the United States as businesses struggled to find skilled workers and wages grew modestly, the Federal Reserve said on Wednesday in its latest report on the economy," Pete Schroeder reports for Reuters. "The U.S. central bank’s 'Beige Book' report, a glimpse of the economy based on conversations with business contacts across all 12 of the Fed’s districts, found economic activity grew at a slight-to-moderate pace in March and early April. A few districts reported some strengthening in economic growth."

"Reports from the Fed’s contacts suggested sluggish sales for both general retailers and auto dealers into April.Home sales and tourism were bright spots. Agricultural conditions were weak and contacts in several Midwest districts expressed alarm about the heavy snow and subsequent widespread flooding," Greg Robb reports for MarketWatch. "There was some concern in the San Francisco district that the balance sheets of some agricultural producers 'weakened notably' due to low market prices and weak export demand."

Businesses in most districts reported difficulty in finding skilled workers for manufacturing, construction, technical and professional jobs; in response, companies mostly increased bonuses and benefits, but only increased wages a little, Schroeder reports. 

Big impacts on the economy in the past few months included uncertainty over foreign trade and severe weather in the Midwest. The partial federal shutdown at the beginning of the year appeared not to impact things much, Schroeder reports.