A new report by the Federal Reserve shows that while the economy saw a small increase in business activity in the last two months, too much uncertainty due to the coronavirus means economic growth will be sluggish in the coming months, Reuters reports.
The Fed’s “Beige Book” report, issued eight times annually, also outlines that economic conditions vary greatly around the country, as some areas have experienced a short-term bump in business even though those surveyed felt uncertainty about long-term growth.
As Reuters noted, “The report showed economic progress was not spread equally across the nation, with the New York Fed district reporting that economic activity had stalled, the Chicago Fed district reporting it had increased strongly, the Atlanta Fed district seeing mixed signals, and the San Francisco Fed saying activity expanded slightly.”
The six-week report covers the timespan from mid-January through late August, a time when many states were optimistically pushing for businesses to re-open. Many areas had to reimplement public health restrictions as the re-opening of businesses and schools led to new outbreaks of coronavirus.