PROVIDENCE – Economic activity in New England continued to expand in October and early November, according to the Federal Reserve’s Beige Book report released Wednesday.
Most responding firms in the region cited cautiously optimistic outlooks, with continued uncertainty, the Fed said.
The report, a survey of businesses, found that labor market conditions in the region varied by sector. Hotel workers in New England remained furloughed. Most manufacturer respondents said they were hiring, with some saying they were having trouble finding workers.
Staffing companies noted they had increased business but reported a lack of supply of labor. The firms reported that the lack of workers was due to the lack of access to day care and school, worries about contracting COVID-19, mandatory 14-day quarantines and potential further shutdowns.
Retail respondents reported improvements in brick-and-mortar store sales compared with the first half of the year.
Travel industry contacts reported hotel stays were still significantly affected by the pandemic.
A majority of surveyed manufacturers reported increases in sales year over year. Capital expenditures had increased, but businesses reported delays in the delivery of capital goods.
Commercial real estate in the region remained unchanged from the Fed’s previous report. Industrial and lab space continued to do well, and retail and office space continued to suffer.
Office tenants near the end of their leases were said to be renewing only for the short term.
Residential real estate closings in the region increased in all states from one year prior. The median piece of home sales rose in all markets, as well. Respondents said they expected the “buying frenzy” to continue through the winter.
