Fed report shows US GDP growth slowing

City A.M. Reporter
Economic growth slowed in much of the US in June and early July, the Federal Reserve said on Wednesday in a report that cast doubt on a pickup in activity in the second half of the year.

The Fed's Beige Book summary of economic conditions across the country said eight of the nation's 12 Fed districts reported moderating growth.

Fresh economic data on durable goods orders has also showed weak business spending
plans in June, with both reports suggesting that a tepid recovery is not gaining momentum as economists had anticipated.

"Economic activity continued to grow; however, the pace has moderated in many districts," the Fed said.

The glum report, which covered the period through to July 15,showed a recovery spinning its wheels rather than gaining traction.

While most districts saw modest hiring increases, labour market conditions remained soft, the Fed said. Home sales were little changed since the Beige Book issued in early June and
most districts reporting on home prices found them flat or declining.

Against that backdrop, wage pressures were subdued and prices pressures moderated somewhat, the Fed said.