Fed sees modest growth, but says optimism is tempered by virus resurgence

Fed sees modest growth, but says optimism is tempered by virus resurgence

File photo of the Federal Reserve Building in Washington Aug 22, 2018. REUTERS / Chris Wattie 

Jan 13 (Reuters) – U.S. economic activity picked up modestly in recent weeks and a growing number of Federal Reserve districts saw employment drop as a surge in coronavirus infections prompted more closures, it said on Wednesday the central bank.

In their “Beige Book” report, which gathers comments from their contacts from companies across the country, the Fed authorities revealed how the footprint of the pandemic varied by region and industry, as the increase in infections reduced the optimism promised by the arrival of effective vaccines.

“While the outlook for COVID-19 vaccines has bolstered business optimism for 2021 growth, this has been tempered by concerns about the recent resurgence of the virus and the implications for short-term business conditions,” the Fed said in the report.

 

As manufacturing activity continued to rebound in nearly all Fed districts, reports on consumer spending were mixed.

(Reporting by Jonnelle Marte and Ann Saphir, Additional reporting by Lucia Mutikani, Edited in Spanish by Manuel Farías)

 


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