“Economic activity increased among most districts, but gains were generally modest and activity remained well below levels prior to the Covid-19 pandemic,” the central bank said in its Beige Book survey released Wednesday. “Continued uncertainty and volatility related to the pandemic, and its negative effect on consumer and business activity, was a theme echoed across the country.”
Gains in the labor market were uneven, the report showed.
“Some districts also reported slowing job growth and increased hiring volatility, particularly in service industries, with rising instances of furloughed workers being laid off permanently as demand remained soft,” it said.
The report, compiled by the Minneapolis Fed, was based on anecdotal information collected from the central bank’s 12 regional branches through Aug. 24.
Businesses and households across the U.S. continue to struggle through the fallout from the coronavirus pandemic, which has severely reduced demand, disrupted supply chains and pushed unemployment as high as 14.7% in April. The labor market has since shown a strong comeback, but joblessness was still above 10% in July.
ADP Research Institute data released earlier on Wednesday estimated private sector payrolls increased 428,000 in August, falling well short of the 1 million-plus expected by economists.
©2020 Bloomberg L.P.
Source: Economy - investing.com
