Most Fed Districts Say Economic Activity Increased Modestly


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Most Federal Reserve districts have reported that employment increased, albeit at a slower pace, noting that the recovery remains incomplete, the Fed’s Beige Book showed on Wednesday.

Additional comments summarized by Reuters:

“A growing number of districts reported a drop in employment levels relative to the previous reporting period.”

“Labor demand was strongest in the manufacturing, construction and transportation sectors.”

“Most Fed districts said economic activity increased modestly from the previous Beige Book period, but conditions continued to vary.”

“Some employers point to staff shortages and difficulty in attracting skilled workers.”

“Two districts reported little or no change in activity, while two others saw a decrease.”

“Recruitment difficulties were exacerbated by the recent resurgence of COVID-19 cases and the resulting disruptions to the workplace in some districts.”

“Contacts in the entertainment and hospitality sectors reported further job cuts due to tighter containment measures.”

“Reports on consumer spending from Fed districts were mixed.”

“Manufacturing activity continued to recover in almost all districts.”

“Businesses in most districts reported that wages increased moderately, but generally remained low.”

“Residential real estate activity remained strong; weak conditions persisted in commercial real estate.”

“Employers in some districts reported raising wages or offering more generous benefits, such as year-end bonuses and flexible work arrangements, to limit employee turnover.”

“Bank contacts saw little or no change in loan volumes.”

“Almost every district has seen modest price increases since the last report.”


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