US economic growth slowed to a moderate pace in early July through August, according to the latest edition of the Federal Reserve’s Beige Book that was released on Wednesday.

The report noted that safety concerns tied to the delta variant of COVID-19 resulted in a pullback in dining out and travel, weighing on the greater economy. Supply shortages, including limited inventories of automobiles and homes for sale, also contributed to the economy’s retreat from its stronger rate of growth registered earlier this year. At the same time, businesses reported to the Fed that they were finding it easier to pass cost increases to consumers through higher prices. The central bank noted that inflation was “steady at an elevated pace”.

Meanwhile, despite supply chain problems, Germany’s industrial output grew for the first time in four months in July, supported by higher production of capital and consumer goods, Destatis said on Tuesday.

The Federal Statistics Office said industrial output, including construction and energy, increased by one per cent in July after a revised decline of one per cent in June. Economists had expected a rise of 0.9 per cent.

Output in manufacturing alone jumped by 1.3 per cent as factories produced more capital and consumer goods. Construction output rose by 1.1 per cent while production in the energy sector fell by 3.2 per cent.

“Even if the supply bottlenecks with semiconductors, which have slowed down production, are likely to persist for a while, the output figures suggest that industry could have overcome its low point,” the economy ministry said.

Finally, the UK property market pause for breath in August, with a survey showing sales and demand easing. The Royal Institution of Chartered Surveyors (RICS) update indicates that the tapering of a stamp-duty holiday on July 1 has poured cold water on a housing market that defied the economic slump. A shortage of properties continues to help to underpin prices.

RICS’s gauge of new buyer enquiries slipped in August to its lowest level since January, as did its measure of agreed sales. But with demand still far exceeding supply − driven by people seeking bigger homes as they work remotely − the vast majority of surveyors polled by RICS − a net 73 per cent − reported rising house prices, albeit down from a reading of 79 per cent in July.

This article has been prepared by Bank of Valletta plc for your general information purposes only.