Fed survey shows modest economic expansion in February

The Federal Reserve survey the Beige Book, published eight times a year, found modest economic growth last month as the U.S. fights to emerge from the coronavirus pandemic.

“Economic activity expanded modestly from January to mid-February for most Federal Reserve Districts,” the report released Wednesday says. 

Manufactures did well overall in February, despite supply change disruptions, and growth was seen in transportation.

“Although a few Districts reported slight improvements in travel and tourism activity, overall conditions in the leisure and hospitality sector continued to be restrained by ongoing COVID-19 restrictions,” the Fed says.

Employment and employee wages did see an increase as locations begin to reopen or expand previously limited capacity. 

“Several Districts reported modest wage increases for high-demand positions with many also noting upward pressure on wages to attract and retain employees,” the survey says.

New York is the only one of the 12 Federal Reserve Districts that saw a modest decline in its economy, with its struggles the greatest in the service sector. 

Dallas noted that the unprecedented winter storm that killed dozens of people in Texas “severely disrupted economic activity,” but officials expect things to return to normal as the state recovers. 

Overall, the Federal Reserve’s contacts seem optimistic about the future as coronavirus vaccines became more available to the public. 

Although health officials are warning that it will be a while until enough people are vaccinated to lift mask mandates and social distancing requirements, most see the millions of vaccinations as a big step in the right direction.