The nation’s economy is showing signs of a historic rebound, driven by the pace of new businesses, consumer spending, and rising job numbers, among other factors.
According to the latest edition of the Federal Reserve’s Beige Book, the national recovery as charted in April and May expanded at a “faster rate than the prior reporting period.”
The publication, which surveys economic conditions in all of the Fed’s twelve regional districts, goes on to note the “positive effects on the economy of increased vaccination rates and relaxed distancing measures,” while also noticing an increase in leisure travel and restaurant spending.
But the rebound, says the Beige Book, is being challenged by a lack of supplies: homebuilders are reporting that strong demand in recent weeks has “outpaced their capacity to build, leading some to limit sales.”
Similarly, with nonresidential construction, demand is up, “even as contacts in several Districts said that supply chain disruptions pushed costs higher and, in some cases, delayed projects.”
The publication reports that the Tenth District, which is based in Kansas City and includes Colorado and northern New Mexico, saw a moderate rise in economic activity in the last two months. However, “about two-thirds of firms reported a negative impact from rising material prices and lack of availability.”
The Eleventh District, which is based in Dallas and includes southern New Mexico, saw its economy expanding “at a solid rate, bolstered by continued strong growth in housing, manufacturing, and nonfinancial services.”
“Reports of labor shortages,” in the Eleventh District, “were more widespread across sectors and skill levels than the last report.”
The Twelfth District, based in San Francisco and taking in all of Arizona, saw a significant expansion of economic activity, as “labor market conditions continued to improve modestly.”
Residential construction in this district, says the Beige Book, “remained strong, while lending activity grew somewhat.”
By Garry Boulard
