PROVIDENCE – Business activity in New England expanded at a moderate pace from early April to late May, according to the Federal Reserve’s Beige Book survey report released Wednesday.
Respondents in the region said labor demand strengthened but hiring was held back by labor shortages, particularly in the restaurant industry.
Building a Stronger Heart: Inside South County Health’s Cardiopulmonary Rehab Program
A Heart-Healthy Start to the Year February is American Heart Month—a time to raise awareness…
Learn More
The report also said that recruiting efforts in the region intensified, with varying degrees of wage increases.
Prices in the region were said to have increased moderately as well, due to high demand and low inventory.
Retail sales in New England were stable or moderately higher from the previous Beige Book report, while restaurant sales were said to have surged. The increase in restaurant opening activity in the area was said to have bouyed retail property leasing.
Staffing firms in the region said that labor demand was robust across most fields, particularly in skilled positions. Some contacts reported that they perceived that generous unemployment benefits were the deciding factor in holding back the labor supply in the region. Other barriers noted by respondents included child care responsibilities and safety concerns.
Most manufacturing respondents in the region reported moderate to strong revenue gains in the first quarter of 2021, compared with the previous quarter. Contacts cited two main limits to growth: labor scarcity and supply chain issues. All manufacturing contacts in the region were optimistic for the rest of 2021.
Commercial real estate in New England was said to be stable or improving. Life sciences construction pans were said to have moderately expanded into Rhode Island, despite remaining constrained in the Boston area.
Residential real estate markets in the region were also said to have seen robust sales and price growth. The condominium market in the region was said to be particularly strong.
