According to the latest Fed's Beige Book, formally called the Summary of Commentary on Current Economic Conditions by Federal Reserve Districts, all districts noted that supply chain issues and low inventories continue to restrain growth.
Additional Takeaways:
"Many districts reported that the surge in Covid-19 cases temporarily disrupted business activity."
"Consumer spending was generally weaker than in the prior report."
"Widespread strong demand for workers remained hampered by equally widespread reports of worker scarcity."
"A few districts reported an acceleration in prices."
"Reports from banking contacts indicated some weakening of financial conditions."
"Rising input costs were cited as a primary contributing factor across a broad swath of industries, with elevated transport costs particularly significant."
"Labor cost increases and ongoing materials shortages also contributed to higher input prices."
"Many firms had difficulty maintaining their staffing levels due to high turnover."
"Firms reported an increased ability to pass on prices to consumers; in most cases, demand has remained strong despite price increases."
"Districts reported overall economic outlook over the next six months stable and generally optimistic, although reports highlighted an elevated degree of uncertainty."
"Firms reported they expect additional price increases over the next several months as they continue to pass on input cost increases."
"Staffing challenges were exacerbated by Covid-19 disruptions in January."
"Firms continued to increase compensation and introduce workplace flexibility to attract workers, especially in historically low-wage positions."
"Contacts reported they expect the tight labor market and consequent strong wage growth to continue."
"A few districts reported signs of wage growth moderating."