AGI – The economy is in “modest recovery from January to mid-February” 2021, but most companies “remain optimistic for the next 6-12 months, when Covid-19 vaccines will be more widely distributed”. The Fed writes it in the latest Beige Book.
Most districts, the Fed explains in the Beige Book, reported that employment levels “increased over the period under review, albeit slowly”. Furthermore, the demand for labor “varies considerably in relation to the sector of reference, and many have experienced difficulties in finding and retaining skilled workers”. As for American spending, the Fed records ‘mixed’ results from sector to sector.
Tourism continues to suffer: “Although some districts have reported slight improvements in travel and tourism activities, the general conditions of the entertainment and hospitality sectors have continued to be severely constrained by the confinements decided to stem the Covid-19 pandemic “.
The Fed districts expect a “modest price increase in the coming months”. This was reported by the US Central Bank in the Beige Book for the first two months of 2021. The Fed recorded a slight increase in prices in the period under review, “in particular for steel and wood”. Increase caused, explains the Fed, “mainly by the disruption of supply chains” of companies. Transportation prices are also rising, “partly due to rising fuel costs”.