The economy in many areas of the United States grew at a slower pace in late July and August as household spending softened, the Federal Reserve said in a report Wednesday.
"Economic activity continued to expand in late July and August, although several districts indicated that the pace had slowed," the Fed said in its "beige book," an anecdotal look at the U.S. economy from the perspective of its 12 regional banks.
The Fed said in the report that a softening in household spending reflected "lackluster retail sales and some cooling in new and existing home sales."
It said consumer prices were "generally flat or up modestly" in July and August but noted rising costs for energy and some materials used in production.
While U.S. employment grew over the period, regional banks reported "some unevenness" across sectors. Manufacturing activity improved across the nation, the Fed said, especially among capital equipment and durable goods makers.
The Fed said wage pressures remained modest, though non-wage labor costs "continued to be a concern for many employers."
The beige book, which takes its name from the color of its cover, is issued about two weeks before the the central bank's policy-making panel, the Federal Open Market Committee, is scheduled to meet.
Wednesday's report will be reviewed at the FOMC's Sept. 21 meeting where analysts widely expect the Fed to raise short-term rates by a quarter percentage point.
