US Economy Expands Modestly Amid Inflation Concerns

The US economy continues to grow at a modest pace according to the Fed's Beige Book. Ten out of the 12 Federal Reserve districts reported slight to moderate economic growth since early July, while two districts saw no change.

Overall employment rose very slightly, with three districts showing modest job gains and five experiencing flat labor markets. Wage growth remained modest to moderate in most regions, primarily driven by significant pay increases in the construction and manufacturing sectors demanding skilled workers.

Businesses raised their selling prices moderately in eight districts, while input cost pressures stayed elevated for manufacturing and construction firms. Consumer spending grew slightly on balance as shoppers demonstrated heightened price sensitivity alongside solid purchases of high-end goods.