Economic growth was "modest or moderate" in most of the country, while four districts reported "little or no growth," according to the Federal Reserve's Beige Book, released Wednesday.
"Philadelphia and three of the four Midwestern Districts observed that activity began to slow in early November as COVID-19 cases surged," according to the report.
While outlooks were generally "positive," the report said, "optimism has waned," with concern about the spike in coronavirus cases, "mandated restrictions (recent and prospective), and the looming expiration dates for unemployment benefits and for moratoriums on evictions and foreclosures," the
Companies reported continuing difficulty in finding 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 report added. "Providing for childcare and virtual schooling needs was widely cited as a significant and growing issue for the workforce, especially for women — prompting some firms to extend greater accommodations for flexible work schedules."
Harker on virus
"The three most important things affecting the economy are: the virus, the virus, the virus," Federal Reserve Bank of Philadelphia President Patrick Harker told a virtual gathering of Wharton School alumni, according to text released by the Fed.
"COVID-19’s resurgence is bound to have an economic effect, both as local governments introduce measures to curtail the spread and as consumers change their behavior," he said. "The latter is a crucial point that sometimes gets lost."
The economy should grow moderately, but below pre-pandemic levels, through the first three months of 2021, accelerating later in the year after the vaccine is introduced.
The lending facilities the Fed introduced earlier this year, Harker said, "should stay open past the end of this year. Until we get through this pandemic, the economy needs to be supported. At this point, the fewer changes we make to our lending facilities, the better."
ADP employment
Private payrolls climbed by 307,000 in November, after increasing an upwardly revised 404,000 in September, initially reported as a 365,000 jump, ADP said Wednesday.
Economists polled by IFR Markets projected 400,000 jobs would be added.
“The private payroll report was not weak enough to really move the needle for Congress to act swiftly in providing immediate relief,” said Ed Moya, senior market analyst at
New York PMI
Manufacturing activity on New York slowed in November, as the Institute for Supply Management-New York's current business conditions fell to 44.2 in November, from 65.1 in October.
A year ago, the index registered 50.4.
The six-month outlook dropped to 48.6 from 62.9. A year ago, it was at 62.8.
The NY-BCI dipped to 811.9 from 814.8. One year ago, it was at 874.5.
Milwaukee PMI
The Institute for Supply Management-Milwaukee PMI climbed to a seasonally adjusted 61.96 in November from 59.42 in October.
New orders rose to 77.08 from 59.84, production decreased to 53.75 from 57.84 while employment dropped to 53.26 from 50.51.
The blue collar index grew to 56.1 from 54.1, while the white collar index climbed to 47.7 from 43.1.
