Beige Book: US economic growth accelerates

The US Federal Reserve Beige Book was published last night – a document containing summaries and comments from the Fed on the economic situation in the country.

According to the report, the US economic recovery accelerated between April and May, despite supply bottlenecks, hiring new hires, and rising prices in many parts of the country.

In addition, the widespread use of Covid vaccinations and the weakening of quarantine measures had a strong impact on consumer spending: their growth is primarily associated with an increase in public spending on travel and restaurants. At the same time, the level of sales of passenger cars remained stable, and this is due to a slowdown in production due to a shortage of semiconductors.

In general, production in the country continues to grow, but many manufacturers report widespread material and labor shortages. The number of employees in the United States is growing relatively steadily, with the largest gains in employment shown in the catering and retail sectors. The growth in wages was also moderate, but it is noted that more and more employers have raised wages and offered bonuses.

The Beige Book is usually published about two weeks before the next Fed meeting. The next meeting of the FRS leadership will take place on June 15-16.