Fed: US economic growth downshifted in July, August
The Federal Reserve said in its latest Beige Book report published on Wednesday that the United States economic growth “downshifted slightly to a moderate pace” during July and August.
Commenting about the reasons behind the negative change, the Fed noted that the largest drawback was registered in the services sector, particularly in tourism and dining out. At the same time, other industries were affected by supply disruptions and labor shortages, with the lack of semiconductor chips representing the biggest challenge for the manufacturers of both cars and electronic equipment.
“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,” the report continued, adding that “several Districts indicated that businesses anticipate significant hikes in their selling prices in the months ahead.”
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