Modest to moderate economic activity in US Fed districts in Oct-Nov

Consumer spending increased modestly and low inventories held back sales of some items, notably light vehicles. Leisure and hospitality activity picked up in most districts as the spread of the Delta variant ebbed in many areas.

Manufacturing growth was solid across districts, though materials and labour shortages limited expansion. High freight volumes continued to strain distribution systems, the document noted.

Activity in the energy sector was generally higher, agriculture witnessed improved financial conditions and rising land values. The outlook for overall activity remained positive in most districts, but some noted uncertainty about when supply chain and labour supply challenges would ease.

Prices rose at a moderate to robust pace, with price hikes widespread across sectors of the economy. There were wide-ranging input cost increases stemming from strong demand for raw materials, logistical challenges and labour market tightness, it added.

ALCHEMPro News Desk (DS)