Fed is Positive about Labor Growth

CNN article, January 18, 2005
http://money.cnn.com/2005/01/19/news/economy/fed_beige.reut/index.htm

The Federal Reserve releases a regular report on economic conditions called the beige book. This report is comprised of regional reports by the 12 regional Reserve offices throughout the U.S.

In general, the report was optimistic about labor growth throughout late December and Early January. Most all of the regions noted a firmer labor environment from the previous report. This conclusion was based on reports of higher wages and business growth in a number of important manufacturing sectors. Many of the regions mentioned that certain key firms in their area had expressed labor shortages, and had raised wages and other incentives to attract more skilled workers.

The Fed was also upbeat about overall capital expenditure over the period, which increased substantially and indicates future economic strength.