U.S. companies are struggling with supply chain disruptions and hiring difficulties and expect consumer prices to rise across the country in coming months, the Federal Reserve said Wednesday.
Economic growth increased at a “moderate pace” from early April to late May, the U.S. central bank said in its region-by-region roundup of anecdotal information known as the Beige Book. The report, prepared by the Federal Reserve Bank of St. Louis, was based on information collected through May 25.
The increased vaccination rate, combined with the relaxation of most COVID-19 restrictions, helped contribute to the faster-than-expected growth, companies said.
Still, companies also cited underlying concerns that have the potential to slow down the economy’s rebound: Homebuilders struggled to keep up with demand, manufacturers faced widespread shortages of materials and labor, along with delivery delays, and “it remained difficult for many firms to hire new workers, especially low-wage hourly workers, truck drivers, and skilled tradespeople.”
