The Beige Book of the Federal Reserve revealed Wednesday that prices rose at a higher-than-average rate, with seven districts reporting strong price growth and the rest posting moderate gains, according to Reuters.
Featured statements
“The demand outlook improved further, but many contacts expressed uncertainty or pessimism about the reduction of supply restrictions.”
“Three-quarters of the districts reported slight or modest increases in employment and the remainder reported moderate or strong increases in employment.”
“Prices increased at an above-average rate, with seven districts reporting strong price growth and the rest posting moderate gains.”
“The demand outlook improved further, but many contacts expressed uncertainty or pessimism about reducing supply constraints.”
“The demand for a healthy workforce was broad-based, but it was considered strongest for low-skilled positions.”
“Wages increased at a moderate rate on average, and low-wage workers enjoyed above-average wage increases.”
“Sectors that posted above-average growth included transportation, travel and tourism, manufacturing, and non-financial services.”
“Energy markets improved slightly and agriculture had mixed results.”
“The labor shortage was often cited as a reason why companies could not staff to the desired level.”
“Disruptions on the supply side were widespread, including material and labor shortages, delivery delays and low inventories of many consumer goods.”
“Out of stock car inventories resulted in somewhat lower auto sales despite steady demand, and home sales increased slightly despite limited supply.”
“Businesses in various districts expected the difficulty in finding workers to extend into early fall.”
“Non-auto retail sales grew at a moderate pace overall, and tourism was driven by the further decline in pandemic-related concerns.”
“Residential construction eased in several districts in response to rising costs, while commercial construction was mixed but slightly higher.”
“Bank lending activity increased slightly or modestly in most districts.”
“Price pressures were broad-based and exacerbated in the hotel sector.”
“Construction costs remained high, but lumber prices relaxed a bit.”
“While some contacts felt that price pressures were temporary, most expected further increases in input costs and sales prices in the coming months.”
“Container prices returned to very high levels after moderating in the spring.”
Market reaction
This publication does not appear to have a significant impact on the USD market valuation. At time of writing, the US Dollar Index was down 0.4% on the day at 92.40.
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