Beige Book

Despite a decline in export sales to Asia, the U.S. economy is thriving in all regions and labor remains in short supply--so much so that the Federal Reserve Board is finding the absence of increased inflation strange. "Taut labor markets continue to hamper business activity in a variety of ways," the central bank said Wednesday in its "beige book" survey. "The supply of entry-level and skilled workers . . . appears to be insufficient."

The results of the recent surveys of national economic conditions by the Federal Reserve Board's 12 regional banks are beginning to sound like a stuck record: moderate economic growth, rising retail sales, tight labor markets, scattered reports of upward pressure on wages but relatively flat retail prices.

The economy kept growing moderately between September and November with little or no sign of wage and price pressures flaring up, the Federal Reserve Board said Wednesday. The Fed's latest "beige book" summary of national economic activity appears to suggest that slow but steady expansion, rather than an acceleration, lies ahead, so there would be little need for interest rate rises to dampen inflation risks.

There was no clear-cut evidence of mounting inflation in August as the economy kept growing moderately, the Federal Reserve Board said Wednesday, though there were signs that wage pressures were building. The Fed's latest "beige book" summary of national economic activity was issued amid worry that central bank policymakers might boost short-term interest rates this month to quash inflation risks. "Inflation indicators . . .

The Federal Reserve Board reported fresh evidence that the nation's economy may be slowing on its own--without an interest rate hike. In one of its periodic surveys of regional economic activity, the Fed said, "The economy continued to expand in June and July, though in some areas the pace of growth moderated since the last report." The findings were consistent with other recent data showing the economy continues to grow, although not at the sizzling pace of last spring.

A strong showing by Microsoft, plus a hot new computer-stock offering, Netscape Communications, pushed technology stocks higher Wednesday. But blue-chip issues languished. The Dow Jones industrial average fell 21.83 points to 4,671.49. Declining issues edged out advancers on the New York Stock Exchange. The Nasdaq composite index, which is laden with computer issues, rose 7.98 at 1,005.10 points, within a hair of its all-time closing high of 1,005.89 reached on July 17.

Economic activity was generally brisk through mid-June, the Federal Reserve Board said Wednesday, but there are further signs that the expansion has been losing steam and that it is stronger in some places than in others.

Prices are rising steadily in a vibrant national economy that is being powered by vigorous consumer spending, the Federal Reserve Board said Wednesday. The Fed's periodic "beige book" survey of regional economic conditions notes that widespread price increases are fueling inflation expectations. Coming less than two weeks before its policy-setting Federal Open Market Committee meets, the latest survey suggests a seventh increase in interest rates is likely at the meeting Jan. 31 to Feb. 1.

The U.S. economy is growing solidly in most of the nation except California, the Federal Reserve System reported Wednesday, as the government reported a surge in March factory business. The Fed's "beige book" report on activity across the country underlined a pickup in the economy in the spring after two months of exceptionally severe winter weather.

California's economy continues to lag that of the rest of the nation, which grew modestly at the beginning of 1994 with little sign of rising prices despite bad weather, the Federal Reserve Board said Wednesday. California's weakness remains centered in the Los Angeles area, home to the beleaguered defense and aerospace industries, said the Fed's "beige book" report on economic activity from mid-January to Feb. 28.