January’s Federal Reserve Beige Book, released Wednesday carried a more upbeat tone than recent beige books. The report which comes two weeks before the Federal Reserve's next scheduled policy meeting (Jan. 31-Feb. 1) painted an upbeat picture of conditions across the country.

The report showed that most districts continue to experience “modest” economic growth and some even cited a “turnaround” in manufacturing compared to the beginning of the year. Firms expressed optimism about growth in 2017, a Federal Reserve report said Wednesday.

Increases in input goods were more widespread than increases in final goods prices. Costs increases were reported for coal, natural gas, and selected building and manufacturing materials. Retailers still struggled to raise prices, and farm products “stayed flat at very low levels,” the report said.

Most districts said that wage pressures had increased, pushed higher in some instances by increases in the states’ minimum wages. The majority of districts reported that labor markets were “tight” and many thought this trend would continue in 2017 with wage pressures likely to rise.

Analysts expect the Fed to hold short-term interest rates at a range between 0.50% and 0.75% at the upcoming meeting. Federal-funds futures indicated just a 4 percent probability for a rate increase at the next policy meeting, according to data from CME Group.