Fed's Beige Book: Most Fed districts say expansion has been modest or moderate

Most Federal Reserve districts noted that the expansion in the economic activity in November has been modest or moderate, the Fed's Beige Book showed on Wednesday.

Additional takeaways as summarized by Reuters

"In most districts, firms reported modest to moderate increases of input prices, while the selling prices of final goods rose at a slight to modest pace."

"Nearly all districts reported that employment rose, but for most, the pace was slow."

"Firms that were hiring continued to report difficulties in attracting and retaining workers."

"Four districts said there was little or no growth, five noted activity remained below pre-crisis levels at least for some sectors."

"Providing for childcare and virtual schooling needs was widely cited as a significant issue for the workforce."

"Philadelphia and three midwestern districts observed slowing activity in early November as COVID-19 cases surged."

"Women were especially affected by challenges accessing child care, prompting some firms to offer more flexible work schedules."

"Most districts reported that firms’ outlooks remained positive but optimism has waned amid the pandemic wave."

"In several districts, firms feared that employment levels would fall over the winter before recovering further."

Market reaction

The US Dollar Index largely ignored this report and was last seen losing 0.18% on the day at 91.15.