U.S. economy continues modest expansion in August, Fed survey shows

U.S. economic activity continues to expand at a modest pace from July through late August, with moderate growth in employment and upward wage pressures, the latest survey result released by the Federal Reserve showed on Wednesday.

"Most districts reported a 'modest'or 'moderate' pace of overall growth," said the Fed in its latest Beige Book which gauges its 12 districts' economy. The survey showed that these districts generally expected moderate economic growth in coming months.

According to the survey, retail sales were little changed in most districts, and activity in manufacturing sector was flat to slightly up in general.

Labor market conditions remained tight in most districts, with moderate payroll growth noted in general, said the survey report. Upward wage pressures increased further and were moderate on balance. Price increases remained slight overall.

Fed Chair Janet Yellen said recently that the case for another interest rate hike has strengthened as the U.S. economy and labor market continue to improve. However, recent economic data, including manufacturing, services activity and job data, were below market expectation, which raised doubt whether U.S. economy could withstand further interest rate hike in September. Enditem