MNI BRIEF: US Growth Strengthens Further, Fed Beige Book Says

The U.S. economy strengthened further from late May to early July, displaying moderate to robust growth, and prices increased at an above-average pace, according to the Fed's anecdotal report on current conditions released Wednesday.

Three-quarters of Fed districts reported slight or modest job gains and the remainder reported moderate or strong increases in employment, and there was "healthy labor demand" that was broad-based but seen as strongest for low-skilled positions, the report said. Overall, the Beige Book said there were "above-average" price gains, with seven Fed districts reporting strong price growth and the remaining five seeing moderate gains.

While some Fed contacts felt pricing pressures were transitory, the majority expected further increases in input costs and selling prices, according to information collected through July 2. One Fed model has expected that supply disruptions could last longer than previously expected, MNI previously reported.