The economies of several US regions came to a halt in November

The economies of several US regions came to a halt in November

Economic activity came to a halt or slowed in several regions of the United States in November due to a sharp rise in new cases of COVID-19. Therefore, companies were less optimistic about their prospects. This was shown by the latest report of the US Federal Reserve on the development of the US economy, the so-called Beige Book. 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. The United States is one of the largest outbreaks of the new coronavirus in the world, and the number of infections is growing rapidly, forcing authorities in many regions to reintroduce restrictions. According to a Fed survey, four of the 12 regions showed little or no growth, while the other four saw a decline in activity last month. Even in those regions that reported growth, activity remained below pre-pandemic levels. The central bank also warned that Philadelphia and three of the four Midwestern districts noted that activity began to slow in early November as new cases of COVID-19 began to increase. The Fed said district reports tend to suggest higher-than-average growth in manufacturing, distribution and logistics, building construction and current home sales, although not without interruption. However, bank contacts in many districts also reported some deterioration in loan portfolios, especially in terms of commercial lending. In terms of further developments, while most districts still describe their prospects as positive, their "optimism has waned due to concerns about the consequences of the second wave of the pandemic and related restrictions, as well as the threat of ending the government's unemployment program and ending moratoriums on evictions and executions, "the Fed report said. Almost all districts reported that employment continued to grow, although in larger districts its pace was slow at best and the recovery remained incomplete.