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September Beige Book report may dispel notions of V-shaped recovery

Despite signs of significant economic growth in some sectors including the Kansas City region, the Federal Reserve’s Beige Book report issued this week may disappoint those expecting a quick bounce-back in recovery from the COVID-19 pandemic.

The release of the Federal Reserve Bank’s September Beige Book report this week might dispel any notions of a sharp V-shaped recovery from the COVID-19 pandemic.

While it notes significant economic growth in some sectors of the 10th District that includes the Kansas City region, it’s not on track to reach pre-pandemic levels, and some sectors remain well off the pace of recovery.

Overall economic activity increased among most federal reserve districts, according to the report, but gains were generally modest and activity remained well below levels prior to the COVID-19.

Among the report’s highlights for the Kansas City Federal Reserve district, economic activity strengthened moderately but remained below pre-pandemic levels in many sectors as in most others.

Consumer spending increased for retail, auto, restaurant and tourism sales. Residential home sales and prices also experienced a rise, but commercial real estate conditions worsened, the report said. Manufacturing activity expanded moderately, while conditions in the energy and agriculture sectors remained weak.

The full report can be found here.