7/17, 8:08 PM (Source: TeleTrader)
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Fed: Growth stays modest with some wage gains

The outlook for the economy of the United States is "generally positive" but manufacturing production was "generally flat" from mid-May through the beginning of July, the Federal Reserve said on Wednesday in its Beige Book as market participants are bracing for an interest rate cut in its upcoming meeting. Expansion remained modest, according to assessments by business contacts, where many of them cited frustration with uncertainty regarding the trade war with China and the bilateral negotiations.

The document revealed a slowdown in the hiring pace while some respondents reported "significant increases" in pay for workers at entry levels though wage growth continued at a modest-to-moderate rate. Mirroring results of the most comprehensive surveys and statistical data, the corporate sector highlighted strong private spending but with little change in sales of vehicles.

In terms of the labor market, firms are still struggling to find qualified workers. Input inflation is said to have eased slightly.

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