Fed’s Beige Book Highlights Uncertainty and Volatility

Although economic activity increased among most areas across the United States, gains remained subdued, with the economy yet to restore its levels prior to the coronavirus (COVID-19) pandemic, according to the US Federal Reserve Beige Book.

The Beige Book report, which was released on Wednesday, showed that with the real estate and housing sectors soaring, other sectors remain quire, such as construction and agriculture.

On the other hand, manufacturing is showing strong recovery signs, which supported by recent data from a surge in the sector’s PMI to the growing factory orders.

Consumer spending is also on the rise, with car sales leading the growth, according to the Fed’s survey.

However, some job cuts turned from temporary to permanent, with slow recovery in activity resulting in job cuts and layoffs.

The economy is still facing risks and uncertainty, according to the report, “continued uncertainty and volatility related to the pandemic, and its negative effect on consumer and business activity, was a theme echoed across the country.”

The uncertainty is also affecting the employment part, as “firms continued to experience difficulty finding necessary labor, a matter compounded by daycare availability, as well as uncertainty over the coming school year and jobless benefits.”