The Federal Reserve's Beige Book revealed on Wednesday that the economic growth in the Fed's districts downshifted slightly to a moderate pace in early July through August, per Reuters.
"All districts continued to report rising employment overall, though the characterization of the pace of job creation ranged from slight to strong."
"Inflation was reported to be steady at an elevated pace, as half of the districts characterized the pace of price increases as strong, while half described it as moderate."
"Demand for workers continued to strengthen, but all districts noted extensive labor shortages that were constraining employment and, in many cases, impeding business activity."
"Some districts noted that return-to-work schedules were pushed back due to the increase in the Delta variant."
"The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism, reflecting safety concerns due to the rise of the delta variant."
"A number of districts reported an acceleration in wages, and most characterized wage growth as strong."
"Several districts noted particularly brisk wage gains among lower-wage workers."
"Employers were reported to be using more frequent raises, bonuses, training, and flexible work arrangements to attract and retain workers."
"With pervasive resource shortages, input price pressures continued to be widespread."
"Other sectors of the economy where growth slowed or activity declined were those constrained by supply disruptions and labor shortages, as opposed to softening demand."
"Looking ahead, businesses in most districts remained optimistic about near-term prospects."
"Some districts reported that businesses are finding it easier to pass along more cost increases through higher prices."
"Several districts indicated that businesses anticipate significant hikes in their selling prices in the months ahead."
The US Dollar Index largely ignored this publication and was last seen rising 0.12% on the day at 92.64.
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