US growth slows amid supply chain disruptions, labor shortages

Washington: US economic growth slowed from mid-August through September, constrained by supply chain disruptions, labour shortages, and a Delta variant-fuelled Covid resurgence, according to a Federal Reserve survey.

“Outlooks for near-term economic activity remained positive, overall, but some Districts noted increased uncertainty and more cautious optimism than in previous months,” the Fed said in its latest survey on economic conditions, known as the Beige Book, based on information collected from its 12 regional reserve banks.

The Beige Book noted that economic activity and employment grew at a modest to moderate rate in recent weeks, as demand for workers was high, but labour growth was “dampened” by a low supply of workers, reports Xinhua news agency.

The survey also noted that most districts reported “significantly elevated prices,” fuelled by rising demand for goods and raw materials.

Total industrial production fell 1.3 per cent in September, following a revised decline of 0.1 per cent in August, the central bank said.

Image courtesy of thesatimes

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