US growth, job gains slowing: Federal Reserve

WASHINGTON: Economic growth and job gains continued in most of the country, but the pace has slowed in many areas while spending remains far below pre-pandemic levels, the US Federal Reserve said Wednesday.

The Fed noted "rising instances of furloughed workers being laid off permanently as demand remained soft," especially in the hard-hit services industries.

Home and vehicle sales were strong but "many districts noted a slowing pace of growth in these areas, and total spending was still far below pre-pandemic levels," the Fed said in its beige book survey of economic conditions.

As monetary policymakers prepare for their next meeting later this month, the report shows the economy has not seen the sharp bounceback some had predicted and President Donald Trump has been betting on as the November presidential elections approach.

Based on data through August 24, the Fed's beige book showed a mixed picture and lingering uncertainty as the coronavirus continues to impact the world's largest economy, where it has also killed more than 185,000 people.

While the report showed economic growth continued in much of the country, "Gains were generally modest and activity remained well below levels prior to the COVID-19 pandemic."

"Employment increased overall among districts, with gains in manufacturing cited most often. However, some districts also reported slowing job growth and increased hiring volatility," the survey said.