According to the latest data from the Federal Reserve, national economic activity accelerated to a moderate pace from late February to early April, with outlooks more optimistic than previous reports due in part by an acceleration in COVID-19 vaccine distribution.

Here are some of the highlights:

• Tourism. Reports were more upbeat, boosted by a pickup in demand for leisure activities and travel. This is attributed to spring break, an easing of pandemic-related restrictions, increased vaccinations and recent stimulus payments among other factors.
• Employment and wages. Employment growth picked up over the reporting period, with manufacturing, construction, leisure and hospitality seeing the greatest increases in headcounts. Wage growth accelerated slightly, playing a role in employer difficulty in retaining employees.
• Prices. Prices have accelerated over the reporting period, as input costs have increased across the board—specifically metals, lumbers, food and fuel. These cost increases are partly attributed to ongoing supply chain disruptions and are expected to continue.
• Auto. Sales are up, even as new-vehicle inventories remained constrained by microchip shortages. This is attributed to the strengthening demand for transportation, for both professional and leisure purposes.
• Real estate. Bankers reported moderate increases in overall loan volumes. However, tight supply of single-family homes is further pushing up prices, and builders are noting ongoing productions challenges across the board.

Read about economic activity by individual districts here. (Federal Reserve, 04.14.21)

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