The Fed released the April issue of the Beige Book report, which includes assessments of the current state of the American economy.
The report, compiled using analysis from the bank’s 12 branches, found that the economy had been growing at a “moderate” pace since mid-February.
The report noted that consumer spending at retail and non-financial services firms has accelerated as Covid-19 cases have fallen across the country, while manufacturing activity is generally solid in most regions but supply chain agglomerations are experiencing bottlenecks the labor market and high input costs continue to challenge firms’ ability to meet demand.
“The prospects for future growth have been clouded by recent geopolitical developments and uncertainty caused by rising prices,” the report said. assessment was carried out.
Noting that inflationary pressures have remained strong since the last report released in early March, the report noted that companies continue to pass on rapidly rising input costs to customers.
According to the report, there have been sharp increases in raw material, transport and labor costs, particularly in manufacturing, spikes in energy, metals and soft commodity prices have been reported in many regions following Russia’s attack on Ukraine, and the Covid-19 quarantines in China’s supply chain disruptions worsened in some reports.
The report found that strong demand allowed companies to pass on increased input costs to customers and found that sales were adversely affected due to increased prices in several regions.
Firms in most regions expect inflationary pressures to persist in the coming months, the report said.
Noting modest employment growth, the report stressed that labor demand remained strong in most regions and industrial sectors.