US growth slows amid supply chain disruptions, labour shortages, Delta surge

by IANS |

Washington, Oct 21 (IANS) 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, which was issued on Wednesday, 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.

"Firms reported high turnover, as workers left for other jobs or retired. Child-care issues and vaccine mandates were widely cited as contributing to the problem, along with Covid-related absences."

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

"Reports of input cost increases were widespread across industry sectors, driven by product scarcity resulting from supply chain bottlenecks," it said.

According to a report released by the Fed on Monday, US industrial production tumbled in September due to the lingering effects of Hurricane Ida and severe supply constraints.

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.

Latest News
FIR against Omicron-positive S African national for fleeing Bengaluru Tue, Dec 07, 2021, 08:11 PM
Amicus Curiae to look into mosquito menace in Delhi Tue, Dec 07, 2021, 08:08 PM
Sand mafia in Punjab worth Rs 20,000 crore: Kejriwal Tue, Dec 07, 2021, 08:05 PM
Geospatial sector set to grow almost 14%, experts call for forward looking policy Tue, Dec 07, 2021, 08:03 PM
India is not one economy but aggregate of economies: Meenakshi Lekhi Tue, Dec 07, 2021, 08:00 PM
Verdict in 29 days: Death penalty to rape and murder convict Tue, Dec 07, 2021, 07:58 PM
Drugs worth over Rs 508 cr seized in Manipur, one Myanmarese held Tue, Dec 07, 2021, 07:56 PM
Action initiated to set up genome sequencing labs in Karnataka: Bommai Tue, Dec 07, 2021, 07:53 PM
Congress seeks probe into illegal construction at UNESCO-endorsed church Tue, Dec 07, 2021, 07:48 PM
Lawyer files complaint against JNUSU over Babri Masjid protest march Tue, Dec 07, 2021, 07:46 PM
KMC polls: No need for central forces, SEC tells Raj Bhawan Tue, Dec 07, 2021, 07:43 PM
Accused in fake certificate racket arrested in J&K Tue, Dec 07, 2021, 07:41 PM
Amarinder lashes out Congress over Maken's appointment Tue, Dec 07, 2021, 07:39 PM
Magician drives vehicle blindfolded to 'open Vijayan's eyes' Tue, Dec 07, 2021, 07:37 PM
Omicron positive doctor in Karnataka again tests Covid positive Tue, Dec 07, 2021, 07:35 PM