Fed Beige Book: Business Activity Expands WASHINGTON (Reuters) - U.S. business activity continued to expand through early April, but price pressures from rising energy costs have intensified in some areas, the Federal Reserve said on Wednesday. "Reports from all twelve Federal Reserve Districts indicate that business activity continued to expand from late February through early April," the Fed's beige book summary of economic conditions said. "Price pressures have intensified in a number of Districts, and most report that high or rising energy prices are a concern across sectors," the Fed added. The Fed said retail selling prices were stable, although there were some reports of increased prices and pricing power. At the factory level, eleven of the twelve Districts reported production or orders rising, with Chicago experiencing solid production levels with the exception of weakness in light vehicle manufacturing. But manufacturers in all districts faced rising costs for inputs, most notably for energy and petroleum-based products, the Fed said. Businesses were having partial success in passing on higher energy and materials costs to customers. The Fed reported increased demand for loans in a range of categories, with commercial lending and industrial lending strong in many areas. At the same time, demand for mortgages was mixed. Fed districts in Minneapolis, Kansas City and Dallas reported activity in the energy sector "revving up." The U.S. drilling rig count is at its highest level since 1986, and drilling plans have accelerated more quickly than expected, the Fed said. Some districts reported modest or moderate wage increases in some sectors and said labor markets in some occupations had become tighter. Several districts also reported that benefits costs, especially health care, continued to rise. The Boston Fed prepared the so-called beige book based on data collected on or before April 11. Members of the Fed's policy-setting Federal Open Market Committee will use the "Current Economic Conditions" report at their scheduled May 3 meeting, where they are widely expected to nudge interest rates up for an eighth consecutive time by a quarter percentage point. Quelle "Fed Beige Book: Business Activity Expands" : reuters.com Main page for "Fed Beige Book: Business Activity Expands"