Coronavirus latest: Anheuser-Busch promises free beer if US achieves vaccine target

Labor shortages and supply chain disruptions are hampering businesses across the country as the economic recovery from the coronavirus crisis accelerates.

The pace of the rebound rose in April and May when consumer spending fell with higher vaccination rates and social exclusion measures, according to the Federal Reserve’s Beige Book report, which provides anecdotal evidence gathered by members of central bank regions about health. of the largest economy in the world.

In some cases, companies made efforts to meet this demand, however, they had difficulty accessing materials and personnel.

“Manufacturers reported that along with delays in shipping materials and crafts, it made it difficult for customers to obtain products,” the report says. “Similar challenges continued in construction. Homeowners often stated that the mortgage exceeded the capacity to build strong demand driven by low interest rates and led some to limit sales. ”

There was also widespread labor shortages, with almost all regions represented in the report having an impact on recruitment and wider employment gains.

“It was difficult for many companies to hire new employees, especially low-paid hourly workers, truck drivers and skilled traders,” he said. “The lack of job candidates has prevented some companies from increasing production and, to a lesser extent, has pushed some businesses to reduce operating hours.”

The report noted that while “increasing numbers” of businesses were offering benefits, including signing bonuses and higher starting salaries to fill positions, wage growth was generally “moderate”.

“Contacts expected job demand to remain strong, but supply will be limited in the coming months,” the report added.

The Beige Book was released at a critical juncture in the U.S. economy and its top political leaders, with concerns that recent inflationary pressures may be more persistent than many expect.

Wednesday’s report acknowledged that costs have risen “overall,” with the most significant gains in construction and manufacturing raw materials.

“However, strengthening demand has allowed some businesses, especially manufacturers, builders and transportation companies, to go through a lot of cost increases for customers,” the report says. “Looking ahead, contacts anticipate cost increases and higher prices in the coming months.”