{"id":121100,"date":"2021-09-08T20:17:17","date_gmt":"2021-09-08T20:17:17","guid":{"rendered":"https:\/\/fin2me.com\/?p=121100"},"modified":"2021-09-08T20:17:17","modified_gmt":"2021-09-08T20:17:17","slug":"u-s-economy-downshifted-slightly-in-august-feds-beige-book","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/u-s-economy-downshifted-slightly-in-august-feds-beige-book\/","title":{"rendered":"U.S. economy "downshifted slightly" in August -Fed's Beige Book"},"content":{"rendered":"

WASHINGTON (Reuters) – The U.S. economy \u201cdownshifted slightly\u201d in August as the renewed surge of the coronavirus hit dining, travel and tourism, the Federal Reserve reported Wednesday, but the economy overall remained in the throes of a post-pandemic rush of rising prices, labor shortages and stilted hiring.<\/p>

FILE PHOTO: Customers drink and dine outdoors at the restaurant “Martha” in Philadelphia, Pennsylvania, U.S., August 7, 2021. REUTERS\/Hannah Beier\/File Photo<\/figcaption>

\u201cThe deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant, and, in a few cases, international travel restrictions,\u201d the Fed reported in its latest Beige Book compendium of anecdotal information about the economy.<\/p>\n

Still the document, summing up information collected through Aug. 30 that will be part of the deliberations at the Fed\u2019s Sept. 21-22 policy meeting, reported continued strong demand for workers and hiring made more difficult by \u201cincreased turnover, early retirements, childcare needs, challenges in negotiating job offers, and enhanced unemployment benefits. Some Districts noted that return-to-work schedules were pushed back due to the increase in the Delta variant.\u201d<\/p>\n

Jobs openings were so plentiful, the Atlanta Fed noted, that restaurants were beset by \u201cghosting coasting,\u201d where employees take a job for few days then quit with no notice and move on to the next restaurant.<\/p>\n

Prices, Fed officials reported, continued to rise.<\/p>\n

\u201cInflation was reported to be steady at an elevated pace,\u201d with Fed districts saying it was either moderate or strong, with costs for metals, freight, construction materials and other industrial staples rising in most districts.<\/p>\n

\u201cWith pervasive resource shortages, input price pressures continued to be widespread,\u201d the Fed reported, causing headaches across industries as disparate as beer brewing and wedding apparel.<\/p>\n

\u201cOne contact reported refunding several bridal parties because dresses did not arrive on time for weddings,\u201d the Richmond Fed reported. In the St. Louis Fed district \u201ca regional brewery reported that their supplier increased prices twice between order and delivery for a pallet of aluminum.\u201d<\/p>\n

The report describes a difficult landscape for the U.S. economy and the Fed heading into a fall season when it was hoped the recovery from the pandemic would take clearer shape.<\/p>\n

The risks of sustained price increases remains real, rather than fading as quickly as Fed officials had hoped.<\/p>\n

On the other hand \u201call Districts continued to report rising employment overall,\u201d possibly alleviating concerns that weak job growth of just 235,000 new positions in August was the edge of a broader slowdown in employment given the spread of the coronavirus Delta variant. Analysts had expected in excess of 700,000 new jobs last month.<\/p>\n

HOPING FOR MORE CLARITY ON JOBS<\/h2>\n

Fed officials are grappling with when to reduce their $120 billion in monthly bond purchases as a first step in a coming shift to post-pandemic monetary policy, and while a decision remains likely this year the August job reading may require further confirmation that hiring will stay on track.<\/p>\n

\u201cThe Delta variant is weighing on consumer spending and jobs, and the pace of growth appears to be slowing,\u201d New York Fed president John Williams said Wednesday.<\/p>\n

\u201cI will want to see more improvement\u201d in the labor market before deciding the economy is ready for the Fed to trim one of its signature pandemic programs, Williams said.<\/p>\n

\u201cIt could be appropriate to start reducing the pace of asset purchases this year,\u201d Williams said, but concluded \u201cit\u2019s clear that the pandemic is far from over, both in terms of its effects on health and its effects on the economy.\u201d<\/p>\n

New data released Wednesday showed the strength that had been building in the jobs market through the summer, with a record 10.9 million job openings in July. That eclipsed the number of people unemployed and left some officials convinced hiring will remain strong and allow the Fed to begin its bond \u201ctaper\u201d soon.<\/p>\n

\u201cThere is plenty of demand for workers and there are more job openings than there are unemployed,\u201d St. Louis Federal Reserve president James Bullard said in an interview published Tuesday in the Financial Times.<\/p>\n

Reports from the Fed\u2019s districts indicated that the August slowdown in job creation may have been driven more by trouble matching workers to positions at a wage they would accept rather than ebbing demand for new employees.<\/p>\n

\u201cEmployment grew strongly but hiring demand continued to outstrip labor response by a wide margin,\u201d the Minneapolis Fed reported. \u201cWorkforce development professionals in Montana also highlighted housing and childcare affordability as major challenges faced by job seekers. COVID-19 exposure remained a big concern among workers and job seekers.\u201d<\/p>\n

Even as the consumer and business services sectors \u201cdeteriorated somewhat,\u201d the San Francisco Fed reported, \u201clabor shortages have severely reduced capacity at some hotels, airlines, and restaurants, with one hotel in the Mountain West having to close off several floors due to a lack of housekeeping staff.\u201d<\/p>\n

Source: Read Full Article<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

WASHINGTON (Reuters) – The U.S. economy \u201cdownshifted slightly\u201d in August as the renewed surge of the coronavirus hit dining, travel and tourism, the Federal Reserve […]<\/p>\n","protected":false},"author":3,"featured_media":121099,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"yoast_head":"\nU.S. economy "downshifted slightly" in August -Fed's Beige Book - Fin2me<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fin2me.com\/business\/u-s-economy-downshifted-slightly-in-august-feds-beige-book\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"U.S. economy "downshifted slightly" in August -Fed's Beige Book - Fin2me\" \/>\n<meta property=\"og:description\" content=\"WASHINGTON (Reuters) – The U.S. economy \u201cdownshifted slightly\u201d in August as the renewed surge of the coronavirus hit dining, travel and tourism, the Federal Reserve [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/fin2me.com\/business\/u-s-economy-downshifted-slightly-in-august-feds-beige-book\/\" \/>\n<meta property=\"og:site_name\" content=\"Fin2me\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-08T20:17:17+00:00\" \/>\n<meta name=\"author\" content=\"Mark\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:image\" content=\"https:\/\/fin2me.com\/wp-content\/uploads\/2021\/09\/U.S.-economy-downshifted-slightly-in-August-Feds-Beige-Book.jpg\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Mark\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/fin2me.com\/business\/u-s-economy-downshifted-slightly-in-august-feds-beige-book\/\",\"url\":\"https:\/\/fin2me.com\/business\/u-s-economy-downshifted-slightly-in-august-feds-beige-book\/\",\"name\":\"U.S. economy "downshifted slightly" in August -Fed's Beige Book - 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