US Economic Recovery Modest To Weak In November As COVID Raged - Fed Beige Book

WASHINGTON (Pakistan Point News / Sputnik - 03rd December, 2020) US economic recovery was modest at best in November as the impact of the COVID-19 pandemic continued for a tenth straight month, the Federal Reserve's "Beige Book" report revealed on Wednesday.

"Most Federal Reserve Districts have characterized economic expansion as modest or moderate since the prior Beige Book period," the Fed said, referring to the period between end-October and end-November. "However, four districts described little or no growth, and five narratives noted that activity remained below pre-pandemic levels for at least some sectors."

Most districts reported that firm business outlooks, the Beige Book said, though it noted that optimism had also waned on concerns over a new wave of the pandemic, mandated restrictions on operations and how long the moratorium on evictions and foreclosures would continue.

The Fed noted that while employment rose, the pace was slow.

"Firms that were hiring continued to report difficulties in attracting and retaining workers. Many contacts noted that the sharp rise in COVID-19 cases had precipitated more school and plant closings and renewed fears of infection, which have further aggravated labor supply problems, including absenteeism and attrition."

The US economy grew by a record 33.1 percent in the third quarter, after shrinking by 31.4 percent in the previous three months and 5 percent in the first quarter.

Despite the third quarter rebound, the US economic outlook remains dire with a rash of new coronavirus infections reported across a nation with 13.7 million COVID-19 cases since January and over 270,000 fatalities related to that. US COVID-19 hospitalizations have hit daily record highs of above 100,000 in recent weeks, even as vaccine developments for the virus have shown promise.

On the jobs front, the United States lost more than 21 million jobs between March and April, at the height of lockdowns forced by the COVID-19. A rebound of 2.5 million jobs was logged in May and 4.8 million in June, before the recovery began slowing. For September and October, there were less than 700,000 jobs added each month.