Fed’s Beige Book noted that economic activity expanded “modestly” from January to mid-February for most Districts. “Most businesses remain optimistic” regarding the next 6-12 months, with vaccine distributions.
Consumer spending and auto sales were “mixed”. Despite “challenges from supply chain disruptions”, overall manufacturing activity for most districts “increased moderately”. Employment levels rose, albeit slowly” in most district. Wage increases for many districts are “expected to persist or to pick up somewhat” over the next several months.
In many districts, rise in costs was “widely attributed to supply chain disruptions and to strong overall demand”. Transportation costs “continued to increase” partly on rising fuel costs and capacity constraints. Several districts reported “anticipating modest price increase over the next several months”.
