Investing.com - The U.S. economy expanded at a modest to moderate pace, but businesses continued to express concern about steeper materials and shipping costs as tight labor markets and uncertainties over the trade environment weighed, according to the Fed's Beige Book released Wednesday.
The central bank’s Beige Book economic report, based on anecdotal information collected by the Fed’s 12 reserve banks through Oct. 15, showed the U.S. economy and inflation continued on a upward trajectory, but manufacturers' said the outlook was uncertain owing to trade policy and rising input costs.
"Several Districts indicated that firms faced rising materials and shipping costs, uncertainties over the trade environment, and/or difficulties finding qualified workers," according to the book. "Prices continued to rise, growing at a modest to moderate pace in all Districts."
Tight conditions in the U.S. labor market continued to pose a challenge for employers across the country as they struggle "to find finding qualified workers, including highly skilled engineers, finance and sales professionals, construction and manufacturing workers, IT professionals, and truck drivers," the Fed said in the report.
Upbeat consumer growth, which has supported strong economic growth, looks set to continue as the Fed said that consumer spending had "increased at a modest pace."
The Fed's Beige Book drew a muted reaction in investor expectations for rate hike, as the odds of December rate hike were unchanged at about 72%, according to the Investing.com's Fed Rate Monitor tool.