According to Reuters, the Federal Reserve’s Beige Book indicated on Wednesday that prices rose at a faster-than-average rate, with seven districts reporting substantial price inflation and the rest reporting moderate gains.
“The demand forecast improved even further, although many contacts voiced skepticism or pessimism about the ease of supply restrictions.”
“Three-quarters of districts reported weak or modest job improvements, while the remaining districts reported moderate or strong job gains.”
“Prices rose at a faster-than-average rate, with seven districts reporting high price increases and the rest reporting moderate increases.”
“The demand forecast improved even further, although many contacts voiced skepticism or pessimism about the ease of supply restrictions.”
“A healthy labor market existed across the board, although low-skilled jobs were considered as the most in demand.”
“Wages climbed at a moderate rate on average, with low-wage workers receiving higher pay increases than the average.”
“Transportation, travel and tourism, manufacturing, and non-financial services all had above-average growth.”
“Energy markets have improved slightly, and agricultural outcomes have been mixed.”
“Labor shortages were frequently cited as a reason why businesses were unable to employ at the appropriate levels.”
“Supply-side problems, such as labor and material shortages, delivery delays, and low inventories of many consumer goods, became increasingly widespread.”
“Limited automobile inventories resulted in somewhat fewer car sales despite consistent demand, and limited supply led in slightly higher home sales.”
“Firms in numerous districts predicted labor shortages to continue throughout the early September.”
“On balance, non-auto retail sales increased at a moderate rate, and tourism was boosted by a reduction in pandemic-related fears.”
“In reaction to growing prices, residential development slowed in numerous districts, while commercial construction was mixed but slightly higher on balance.”
“In most districts, bank loan activity increased marginally or mildly.”
“Pricing pressures were widespread and intensified in the hospitality industry.”
“While construction costs remained high, lumber prices are said to have softened slightly.”
“While some contacts believed that pricing pressures were just temporary, the majority predicted that input costs and selling prices will rise more in the coming months.”
“After having softened in the spring, container prices have returned to very high levels.”
This announcement does not appear to have had a substantial impact on the USD’s market value. The US Dollar Index stood at 92.40 at the time of writing, down 0.4 percent for the day./n
