Economic activity has risen to the last in almost all central bank districts, according to the Fed’s economic report published on Wednesday (Beige Book). However, activity is still significantly lower than it was before the pandemic attacked the United States.
Consumer spending has risen somewhat recently as some of the corona restrictions have been removed. Retail sales would have increased accordingly. Likewise, the revenues of the hotel and restaurant industry would have increased somewhat, but they were still clearly below the previous year’s level. The US industry was able to increase its production, but from a very low level. The economic outlook is described as very uncertain because it is not clear how long the corona pandemic will last and how severe the economic consequences will be.
The current report was prepared by the Chicago Central Bank based on information the bank received from third parties up to early July. The assessment is therefore not the Fed’s perspective. Most of the consequences of the recent escalation of the corona pandemic in the south and west of the United States have not been taken into account. Large states such as California have reinstated some corona restrictions due to the rapidly increasing number of infections. Economists believe that this will dampen the economic recovery.
/ bgf / he