The U.S. economy grew at a faster rate in April and May than earlier in the year, according to the Federal Reserve’s latest Beige Book report released Wednesday. The economy expanded overall at a “moderate pace,” the report found.
What happened: Consumer spending picked up as a result of increased coronavirus vaccination rates. Manufacturing activity increased despite notable supply chain challenges. Inflation pressures continued to build as both input and selling prices moved higher.
Firms were adding to staff at a steady pace. Some companies reported it was difficult to find low-wage hourly workers. In some cases, this led some businesses to reduce their hours of operation.
There were reports of record traffic at East Coast ports.
Big picture: The economy appears to be on an upward growth trajectory but perhaps not at the “boom” level that many economists talk about. Still, Americans are taking advantage of their newfound freedom to eat out and travel.