Fed Beige Book: Supply-Chain and Labor Shortages Limit Growth

The U.S. economy expanded at a modest rate from late October to early November, the Federal Reserve said in its latest Beige Book report. Overall growth was again constrained by supply-chain disruptions and labor shortages.

Consumer spending increased modestly. But low inventories held back sales of some items, notably light vehicles. Leisure and hospitality activity picked up in most Fed districts as the spread of the Delta variant largely ebbed. Yet while construction and manufacturing activity generally increased, the sector was held back by scarce materials and labor. The outlook for overall activity remained positive in most districts, but some noted uncertainty about when supply chain and labor supply challenges would ease.