Fed Says US Economy Expanding, Shale Production Steady
WASHINGTON, Dec 3 (Reuters) - U.S. economic activity continued to expand in October and November, with lower gasoline prices boosting consumer spending, the Federal Reserve said on Wednesday.
In its Beige Book report of anecdotal information on business activity collected from contacts nationwide on or before Nov. 24, the U.S. central bank said a number of its districts remained optimistic about the outlook.
"Consumer spending continued to trend higher in most districts in October and November," the Fed said. "Some contacts viewed lower gasoline prices as a contributing factor to higher consumer spending, and an early cold spell helped spur sales of winter apparel in several districts."
The report, compiled by the Federal Reserve Bank of Chicago, is in line with manufacturing and employment data that have suggested the economy was weathering slowing global demand.
Despite a sharp drop in crude oil prices, drilling activity in shale production districts remained steady, the Beige Book showed.
"In early November, oil and gas exploration activity decreased in North Dakota and increased in Montana relative to a month earlier; production remained at record levels," the Fed said. "Despite recent declines in oil prices, officials in North Dakota expect oil production to continue increasing over the next two years."
Oil prices have declined since June and touched a five-year low early this week, reflecting in part slowing global economic growth and increased domestic production in the United States.
The Beige Book found that employment gains were widespread across the districts.
Strengthening labor market conditions resulted in employers in some districts struggling to retain key workers as well as fill job openings in sectors such as information technology, engineering, legal and health services, manufacturing and transportation.
While inflation remained subdued, a number of districts reported slight-to-moderate increases in labor costs.
"Upward wage pressures continued to be evident for certain types of occupations and for skilled workers," the Fed said.
(Reporting by Lucia Mutikani; Editing by Paul Simao)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Rooftop Solar Now 4th Largest Source of Electricity in Australia
- US Confirms Reimposition of Oil Sanctions against Venezuela
- EU, Industry Players Ink Charter to Meet Solar Energy Targets
- Analyst Says USA Influence on Middle East Seems to be Fading
- Russian Ships to Remain Banned from US Ports
- Brazil Court Reinstates Petrobras Chair to Divided Board
- EIB Lends $425.7 Million for Thuringia's Grid Upgrades
- Var Energi Confirms Oil Discovery in Ringhorne
- Seatrium, Shell Strengthen Floating Production Systems Collaboration
- An Already Bad Situation in the Red Sea Just Got Worse
- What's Next for Oil? Analysts Weigh In After Iran's Attack
- USA Regional Banks Dramatically Step Up Loans to Oil and Gas
- EIA Raises WTI Oil Price Forecasts
- How Likely Is an All-Out War in the Middle East Involving the USA?
- Venezuela Authorities Arrest Two Senior Energy Officials
- Namibia Expects FID on Potential Major Oil Discovery by Yearend
- Oil Markets Were Already Positioned for Iran Attack
- Is The Iran Nuclear Deal Revival Project Dead?
- Petrobras Chairman Suspended
- Oil and Gas Executives Predict WTI Oil Price
- An Already Bad Situation in the Red Sea Just Got Worse
- New China Climate Chief Says Fossil Fuels Must Keep a Role
- Oil and Gas Execs Reveal Where They See Henry Hub Price Heading
- Equinor Makes Discovery in North Sea
- Macquarie Strategists Warn of Large Oil Price Correction
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Standard Chartered Reiterates $94 Brent Call
- Chevron, Hess Confident Embattled Merger Will Close Mid-2024
- Analysts Flag 'Remarkable Feature' of 2024 Oil Price Rally