The Federal Reserve’s review of business conditions in the United States shows that economic activity in several regions slowed down in November due to increasing coronavirus cases.
Public health experts predict that COVID-19 cases will continue to rise after Thanksgiving.
But already now most Federal Reserve districts have described economic growth as moderate or lower than in previous seasons.
Banking contacts in many counties reported some deterioration in their loan portfolios, especially in commercial lending to retail, recreation and hotel businesses. Most counties reported that company forecasts remained positive; however, optimism was fading – many contacts expressed concern about the recent wave of the pandemic, restrictions (recent and anticipated), and the approaching expiration dates of unemployment benefits and eviction and disposition moratoria.
In most counties, firms reported moderate increases in input prices, while selling prices for finished goods rose slightly to moderate rates.