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Beige Book reveals somewhat slowed economic activity
The Federal Reserve's Beige Book, released Wednesday, revealed businesses remain optimistic regarding the next 6-12 months as coronavirus vaccines become more widely distributed.
"While we all wait for the expected surge in economic activity unlocked by the vaccination campaign, the economy remains stuck in neutral," said NAFCU Chief Economist and Vice President of Research Curt Long. "We have had several lackluster jobs reports in a row, with another expected on Friday."
According to the Beige Book, most Fed districts noted modest increases in economic activity since the last report period. Historically low mortgage rates continued to spur robust demand for both new and existing homes in most districts, as home prices continued to rise in many areas of the U.S.
Other notable insights from the latest Beige Book include:
- mixed reports on consumer spending and auto sales;
- overall conditions in the leisure and hospitality sector continued to be restrained by ongoing restrictions, with a few districts reporting slight improvements in travel and tourism activity;
- manufacturing activity for most districts increase moderately despite challenges from supply chain disruptions; and
- a majority of districts reported that employment rose, although the pace was slow.
The Beige Book report – a Fed publication on current economic conditions across the 12 districts – was based on information collected on or before Feb. 22.