(ConservativeHub.com) – America continues to struggle to reopen its economy in the wake of the COVID-19 pandemic. The rise of new variants and the administration’s inability to handle collateral issues have exacerbated the situation. A recent report from the Federal Reserve sheds some light on the hurdles and challenges the nation must face.
On December 1, the Federal Reserve issued the latest version of the Beige Book. Published eight times a year, the book provides anecdotal data detailing the state of economic affairs on a region-by-region basis. It includes 12 separate reports covering the nation’s Federal Reserves from Boston and New York in the east to San Francisco in the west and several intervening points. The Fed created the report using information collected before November 19.
Supply chain bottlenecks, labor shortage holding back US economy, Fed's Beige Book sayshttps://t.co/eeaglT2gx1
— FOX Business (@FoxBusiness) December 1, 2021
On the plus side, the report’s national summary showed economic activity “grew at a modest to moderate pace” in most areas. Consumer spending increased moderately, and nonresidential real estate transactions experienced increased activity. Energy sector activities showed some growth, as did the demand for loans.
On the flip side, supply chain delays and disruptions coupled with labor shortages negatively impacted several sectors. For instance, although construction experienced growth in demand, the scarcity of labor and materials blocked its potential expansion. Similarly, the manufacturing industry saw solid growth across all Federal Reserve Districts but experienced growth limitations due to supply blockages and a lack of workers.
Clearly, fixing the nation’s economy will require a lot of work. Hopefully, the Biden administration is up to the task. In the meantime, anxious Americans are watching.
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