Fed says economy facing woes
WASHINGTON — The Federal Reserve reports that the economy faces a number of headwinds, including supply-chain disruptions, labor shortages and uncertainty about COVID.
In its latest survey of business conditions around the nation, the Fed said Wednesday that a majority of its 12 regions viewed consumer spending, the main driving force for the economy, as remaining positive despite the various speed bumps.
The report noted wide differences in performance, however. It noted that auto sales suffered because of constrained inventories due to problems obtaining critical semiconductor components. Manufacturing, meanwhile, was growing either moderately or robustly depending on which Fed district was reporting.
“Outlook for near-term economic activity remained positive, overall, but some districts noted increased uncertainty and more cautious optimism than in previous months,” the Fed said in the report on business conditions nationwide, known as the beige book.