Fed Beige Book: Moderate Economic Expansion in April/May

The U.S. economy expanded at a moderate pace from early April to late May as vaccine rates increased and social activity began to normalize, said the Federal Reserve in its latest Beige Book report. Consumers spent more dollars on leisure travel and restaurants, giving a boost to the tourism industry that was among the hardest hit by the pandemic.

Districts reported difficulty in finding workers to fill open positions, however, especially in lower hourly wage positions such as restaurant work and retail. Construction and transportation noted shortages for skilled tradespeople and truck drivers despite incentives to attract and retain workers. Labor supply is expected to remain well short of demand in the months ahead.