- Economic activity across US expanded at a modest pace in the final weeks of 2021
- Some districts reported that transportation bottlenecks had stabilized in the past few weeks but procurement costs remain elevated
- Many contacts noted that wage gains at the low end were particularly strong
- Many contacts attributed the high cost of inputs to ongoing supply chain disruptions
- Some districts noted that price increases had decelerated a bit from the recent robust pace
- Optimism remained generally high
- Several districts cited businesses trimming expectations for growth in the next several months
- Most districts noted a sudden pullback in leisure travel, hotels and restaurants as new cases rose
- Compensation growth remained well-above historical averages across industries, demographics and geographies
- Full report
As usual, there's something for everyone in the Beige Book. The wage growth commentary is certainly inflationary but Team Transitory might point to improvements in bottlenecks as a sign of things to come.
