Business briefing

The economy kept growing in April through late May, with more regions citing worker shortages across a widening range of occupations, the Federal Reserve reported Wednesday.
In its latest survey of economic conditions nationwide, the Fed found that most of its 12 regions viewed economic growth as moderate to modest rates. Two districts — Boston and Chicago — said growth had slowed, while New York said business activity had “flattened out.”
Businesses reported that labor markets continued to tighten, and many firms were offering higher wages where shortages were most severe. One firm in the district of the Fed’s Chicago regional bank said that it had been able to attract better applicants and improve the retention of unskilled workers by raising wages 10 percent.
The information in the Fed’s survey, known as the Beige Book, will be used when Fed officials meet June 13-14. The Fed is expected to raise a key interest rate at the meeting.
The Fed cut its key policy rate to a record low near zero in December 2008 and left it there for seven years as it tried to stimulate borrowing and economic activity to lift the country out of the worst economic downturn since the 1930s.
McDonald’s to expand delivery
McDonald’s said delivery through UberEats will be available in about 1 in 4 of its U.S. locations by the end of June, or about 3,500 restaurants.
The chain, headquartered in suburban Chicago, offers delivery via UberEats from more than 2,000 restaurants nationwide, in New York, Los Angeles, Chicago, Seattle and Atlanta.
Speaking at a conference in New York on Wednesday, CEO Steve Easterbrook said McDonald’s will continue to expand delivery as UberEats grows.
McDonald’s said it’s “encouraged by early results.” Almost 60 percent of orders are being placed in the evening hours or after midnight, times of the day when McDonald’s restaurants are typically slowest.
Kellogg to cut more than 1K jobs
Kellogg Co. is closing distribution centers and cutting more than 1,000 workers as it follows through with a cost-cutting plan amid falling sales.
The maker of Frosted Flakes, Pop Tarts and Eggo waffles notified agencies in several states of the closures this week.
Earlier this year, Kellogg said it would close nearly 40 distribution centers and use a warehouse system. It said it would be ending direct delivery of products to supermarkets and big-box retailers and instead ship those products to warehouses before they move to retailers’ distribution centers. That’s a system the company already was using for the majority of its products.
THE BOTTOM LINE


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