(Bloomberg) — The U.S. economy expanded across most regions and industries in July and August, a Federal Reserve report showed, as tighter labor markets boosted wages for some workers.
Six of 12 Fed districts reported “moderate” growth, and five others said expansion was “modest,” according to the Beige Book, released Wednesday in Washington. The survey is based on reports gathered on or before Aug. 24 by regional Fed banks.
The report gives central bank officials, who next meet Sept. 16-17, an anecdotal picture of growth as they consider lifting interest rates in an environment colored by market volatility and slowing growth in China.
Boston, San Francisco and Dallas districts specifically referenced the China slowdown as a source of weaker demand for some products, including chemicals, wood products and high-tech goods. The word “China” or “Chinese” was mentioned 11 times. It was not mentioned in July’s report.
“Most districts reported modest to moderate growth in labor demand,” the Beige Book said, with this tightening in labor markets pushing up wages slightly in some industries, especially in the New York, Cleveland, St. Louis and San Francisco districts.
The Beige Book also showed that manufacturing activity was mostly positive, with only the New York and Kansas City Fed districts seeing declines.