Supply chain issues continue to restrain US growth: Fed Beige Book

By Ovunc Kutlu

ANKARA (AA) - Supply chain issues and low inventories continue to restrain US economic growth, according to the Federal Reserve's Beige Book released Wednesday.

Disruptions in supply chains are expected to persist and continue to negatively impact manufacturing, real estate and construction, retail, travel, tourism, and overall prices, according to the report prepared by responses of the Federal Reserve Bank's 12 districts.

"Labor cost increases and ongoing materials shortages also contributed to higher input prices. Firms reported an increased ability to pass on prices to consumers; in most cases, demand has remained strong despite price increases," the report said.

"Firms reported they expect additional price increases over the next several months as they continue to pass on input cost increases," it added.

While the Fed districts are mixed regarding inflation, some expressed optimism that inflation will ease as supply chains improve, but wage inflation may continue for longer, according to the report.