Fed's 'Beige Book' Report Cites Stronger Economy
he U.S. economy bounced back following the two big hurricanes in August and September, but lingering high fuel prices were pushing up shipping rates in some regions of the country, the Federal Reserve said Wednesday.
The Fed’s latest “Beige Book” report was prepared by Federal Reserve Bank of St. Louis and was based on information collected in all Fed districts from Oct. 12 through Nov. 21.
The report said that while demand for trucking and shipping services remained strong in the Cleveland district, fuel price increases that could not be billed to clients hurt trucking firms’ profits, and several companies said they were considering raising their base rates next year.
The Chicago area saw strong orders for its tool and heavy truck industries, though the region reported shortages of rail, barge, and trucking capacity, the report said.
As previous Beige Book reports have noted, some regions have had difficulty attracting and retaining truck drivers — the current report cited the Dallas and Cleveland regions.
In the Dallas region, which includes areas of the U.S. chemical industry, contacts complained of chaotic shipping conditions and said trucks were in short supply, the report said.
The Beige Book is published eight times a year, roughly two weeks before the Fed’s next rate meeting. The Federal Reserve Open Market Committee’s next and final meeting for 2005 is scheduled for Dec. 13.
