Fed's Beige Book: Outlook for growth remains generally week. Softening demand in near-term

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• Economic activity was unchanged, on balance, since early July, with five Districts reporting slight to modest growth in activity and five others reporting slight to modest softening.
• The outlook for future economic growth remained generally weak
• expectations for further softening of demand over the next 6 to 12 months
• employers noted improved worker retention on balance
• wages grew across all districts, although reports of a slower pace of increases and moderating salary expectations were widespread
• most contacts expected price pressures to persist at least through the end of the year
• Most Districts reported steady consumer spending as households continued to trade down and to shift spending away from discretionary goods and toward food and other essential items.
• Auto sales remained muted across most Districts, reflecting limited inventories and elevated prices.
• Hospitality and tourism contacts highlighted overall solid leisure travel activity with some reporting an uptick in business and group travel.
• Manufacturing activity grew in several Districts, although there were some reports of declining output as supply chain disruptions and labor shortages continued to hamper production.
• Employment rose at a modest to moderate pace in most Districts.
• Overall labor market conditions remained tight, although nearly all Districts highlighted some improvement in labor availability, particularly among manufacturing, construction, and financial services contacts.
• Price levels remained highly elevated, but nine Districts reported some degree of moderation in their rate of increase.
• Substantial price increases were reported across all Districts, particularly for food, rent, utilities, and hospitality services.
• manufacturing and construction input costs remained elevated, lower fuel prices and cooling overall demand alleviated cost pressures, especially freight shipping rates.
• Several Districts reported some tapering in prices for steel, lumber, and copper. Most contacts expected price pressures to persist at least through the end of the year.

US stocks continue to advance:

• Dow industrial average is up 419 points or 1.35% at 31564.91
• S&P index is up 63.74 points or 1.63% of 3971.51
• NASDAQ index is up 204 points or 1.77% at 11749.01
• Russell 2000 is up 26 points or 1.45% at 1818.32

Apple shares are up $1.08 or 0.68% as they have their annual investor conference.

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