April 14 2021 U.S. economic activity has recovered modestly, but job growth is still constrained by labor shortages, according to a national economic survey released by the U.S. Federal Reserve on Thursday.
The report is based on the latest findings of 12 regional reserve banks, also known as the “brown book”. The report showed a modest recovery in U.S. economic activity and an increase in consumer spending between the end of February and the beginning of April.
On the industry side, tourism growth is more optimistic, thanks to the relaxation of restrictions on Coronavirus outbreak and increased vaccinations. Manufacturing activity has expanded further, but there is a general risk of supply chain disruptions. Meanwhile, economic activity in areas such as retailing remains weak.
Over the same period, the U.S. job market picked up momentum and wage growth accelerated slightly. The number of workers increased modestly in most jurisdictions, with higher employment growth in manufacturing, construction, leisure and hospitality. Overall, labour shortages remain a challenge for the continued recovery of the job market.
In addition, overall prices rose slightly, with stronger prices in some jurisdictions. Costs in industries such as manufacturing, construction, retailing and transportation rose across the board, partly due to supply chain disruptions. Prices are widely expected to continue to rise in the near term.
The Fed issues an eight-times-a-year “brown book” that uses the Regional Reserve Bank to take a look at the U.S. economy. The report is an important reference for the Fed’s regular monetary policy meeting. The next regular meeting of the Fed’s monetary policy will be held from April 27 to 28.