WASHINGTON, July 12 (Xinhua) -- U.S. economy grows at moderate pace in June, with tighter labor market and muted inflation pressure, according to the latest survey result released by the Federal Reserve Wednesday.
"Economic activity expanded across all 12 Federal Reserve Districts in June, with the pace of growth ranging from slight to moderate," said the Fed in its latest Beige Book which gauges its 12 districts' economy.
Majority of the districts expected economy to grow at modest to moderate pace in the months ahead, said the report.
Consumer spending, which accounts for nearly 70 percent of the U.S. economy, appeared to be rising across a majority of districts, led by increases in non-auto retail sales and tourism, said the report.
According to the report, employment in most districts maintained a modest to moderate pace of expansion, while Atlanta and St. Louis districts noted flat employment levels.
The report showed that labor markets tightened further for both low and high skilled positions.
However, the tight labor market did not push too much upward pressures on wages, as wages continued to grow at a moderate to moderate pace in most districts.
Prices continued to rise modestly in the majority of districts and a few districts noted that price pressures had eased slightly, said the report.
Fed chair Janet Yellen said on Wednesday that the central bank will continue to raise interest rates gradually and start to shrink its balance sheet this year, while monitoring inflation closely.
