US October Beige Book cites modest pace of economic expansion

The Federal Reserve's Beige Book, which contains an assessment of economic conditions from the 12 Federal Reserve districts through October 5, reported that economic activity continued to expand at a "modest" pace from late August. Six districts reported "modest" growth, another three described growth as "moderate," and two others simply noted that activity increased. 

The strong dollar was cited across districts as a factor limiting growth in manufacturing and tourism spending, while lower energy prices continued to depress activity in the energy sector. Consumer spending and motor vehicle sales continued to grow, banking activity remained stable, and real estate markets strengthened. 

On balance, the October Beige Book provides little new insight into economic activity beyond recent indications from other high frequency economic indicators. The anecdotal evidence from regional Federal Reserve banks continues to indicate a divergence between the services and manufacturing sectors, while employment growth remains stable and wage growth remains low.