Highlights of the Fed report
- Outlook for demand improved further but many contacts uncertain about the easing of supply constraints
- Wages increased at a moderate pace on average and low wage workers enjoyed above-average pay increases
- Healthy labor demand as broad based but strongest for low-wage workers
- Firms in several districts expected difficulty in finding workers into the Fall
- Lending activity increased slightly or modestly in most districts
- While some contacts felt that pricing pressures were transitory, the majority expected further increases in input costs and selling prices in the coming months
- Pricing pressures were broad-based
- Pricing power was mixed, as some contacts reported that high end-user demand enabled them to increase their prices and others said that input price pressures had reduced their profit margins
- Full text
This line has to be worrisome for the Fed:
"While some contacts felt that pricing pressures were transitory, the majority expected further increases in input costs and selling prices in the coming months.
