The Fed's Beige Book: the US economy is growing at a modest pace

Last night, the Beige Book review was published, in which the regulator reported that the US economy grew at a moderate pace at the end of 2021. Representatives of the central bank note that the recovery is still being held back by ongoing disruptions in supply chains and a shortage of workers.

In addition, the survey provided information on consumer spending: most districts noted a decline in vacation trips, hotel occupancy and restaurant visits amid an increase in the number of cases of coronavirus in recent weeks.

The manufacturing sector continued to grow at the end of the year, although different rates of recovery were recorded in each region. And although overall optimism remained at a high level, some businesses said that expectations of growth in the coming months are weakening.

The report also touched on the topic of jobs. It is noted that in the last weeks of the year, the number of jobs increased slightly, while the need for new employees remains high in many districts. 

The tense situation in the labor market has led to a steady increase in wages across the country. In addition to raising salaries, many companies were forced to adjust their work requirements – the transition to part-time work allowed them to keep staff at their workplaces and attract more job seekers.

* The Beige Book review is based on data from twelve Federal Reserve banks and is published approximately two weeks before the US Federal Reserve meeting. The information used in the preparation of the current report was collected in the period up to and including January 2.