Fed survey finds growth ‘downshifted’ in summer due to COVID

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — U.S. economic activity “downshifted” in July and August due to rising concerns about COVID’s delta variant, as well as supply chain problems and labor shortages. That’s according to the Federal Reserve’s latest survey of business conditions around the nation. The Fed survey, released Wednesday, says that the slowdown in economic activity was largely attributable to a pullback in dining out, travel and tourism, reflecting safety concerns due to the rise of the delta variant. The Fed report noted particular weakness in auto sales attributed to low inventories due to a shortage of computer chips.