Beige Book: Economic Activity Grows Moderately, Held Back by Supply Chain Issues

Economic activity grew at a moderate pace from early October to mid-November, but some parts of the country reported constrained growth, despite strong demand due to supply chain disruptions and labor shortages, according to the Federal Reserve’s eighth Beige Book release of the year. The report was based on information collected through Nov. 19.

Loan demand increased in almost all regions of the country, though some areas reported declines in residential mortgages, the Fed noted. Most districts reported modest growth in consumer spending, held back by low inventories, especially light vehicles.

Price hikes were widespread across the economy, the Fed said, rising at a moderate to robust pace. The outlook for economic activity continues to be positive, according to the report, but some districts expressed uncertainty about when supply chain and labor supply challenges would ease.