Highlights of the Beige Book released Oct 20, 2021:
- Majority saw modest to moderate growth increase but several noted the pace had slowed due to supply chains, labor and delta
- Manufacturing grew moderately to robustly in most parts of the country, as did trucking and freight
- Growth in nonmanufacturing activity ranged from slight to moderate for most Districts
- Residential real estate activity was unchanged or slowed slightly
- Outlooks for near-term economic activity remained positive, overall, but some Districts noted increased uncertainty and more cautious optimism
- Most Districts reported significantly elevated prices, fueled by rising demand for goods and raw materials.
- Full text
The commentary on pricing didn't exactly scream 'transitory'.
Most Districts reported significantly elevated prices, fueled by rising demand for goods and raw materials. Reports of input cost increases were widespread across industry sectors, driven by product scarcity resulting from supply chain bottlenecks. Price pressures also arose from increased transportation and labor constraints as well as commodity shortages. Prices of steel, electronic components, and freight costs rose markedly this period. Many firms raised selling prices indicating a greater ability to pass along cost increases to customers amid strong demand. Expectations for future price growth varied with some expecting price to remain high or increase further while others expected prices to moderate over the next 12 months.
