The Fed’s report showed a continued rise in consumer spending, which grew in most parts of the country. A Target store in Miami last month.
Photo: Joe Raedle/Getty Images
U.S. economic growth slowed to a modest to moderate rate this fall as companies grappled with supply-chain problems, a labor shortage and continued fears around the Delta variant of Covid-19, the Federal Reserve said Wednesday.
Businesses were also burdened with “significantly elevated prices” due to higher costs for raw materials and shipping, and many said they passed those price increases on to their customers.
The report, known as the Beige Book, collects anecdotes from businesses in Fed districts around the country.
“Outlooks for near-term economic activity remained positive, overall, but some districts noted increased uncertainty and more cautious optimism than in previous months,” the report said.
One bright spot in the report was the continued rise in consumer spending, which grew in most parts of the country. Manufacturing activity also increased and residential real estate spending was flat.
Most areas saw “robust wage growth,” the report said, as employers competed for workers. Some retail, hospitality and manufacturing companies had to reduce hours due to a lack of available workers.
Problems finding child care, vaccine mandates and Covid-19-related absences kept employees away, the report said.
Write to David Harrison at [email protected]
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