Some segments of the US economy showed promising signs of recovery

Some segments of the US economy showed promising signs of recovery

At the end of last year, some segments of the US economy showed promising, albeit very modest, signs of recovery from the damage caused to the economy by the new coronavirus pandemic. The latest report by the Fed's central bank on the development of the US economy, the so-called Beige Book, showed this on Wednesday evening (January 13).

Slight growth in economic activity

However, the overall picture of the US economy remains mixed, as some regions have slowed down due to the steady growth of new cases of COVID-19. The Beige Book is an unofficial assessment of the state of the US economy and is published by the Fed eight times a year. The central bank bases its compilation on information from its 12 regional banks. According to the latest Fed report, most regions in the country have seen "modest growth in economic activity" in recent weeks. But two districts reported a decline and the other two had little or no change in activity.

Districts report declining sales

At the same time, reports on consumer spending, which account for around 70% of economic output, are mixed. Some districts have reported a decline in retail sales and demand for hospitality and leisure services as local governments have introduced more stringent measures to curb the spread of the disease. The world's largest economy recorded a record decline in April-June 2020, by 31.4%, due to blockades, when many companies had to close down. In the summer, economic activity revived as blockades eased and companies adjusted to the new protocol, but this progress was threatened by a second wave of pandemics in the fall.