Economic activity declined in all districts, falling sharply in most, reflecting disruptions associated with the COVID-19 pandemic, the Federal Reserve said in its Beige Book on Wednesday. Additional takeaways “Employment continued to decrease in all districts.” “Consumer spending fell further as mandated closures of retail establishments remained largely in place during most of the survey period.” “Securing PPP loans helped many businesses to limit or avoid layoffs.” “Spending declines were especially severe in the leisure and hospitality sectors; auto sales were substantially lower than a year ago, although several districts noted recent improvement.” “Employment continued to fall sharply in retail and in the leisure and hospitality sectors.” “Contacts cited challenges in bringing employees back to work, including workers’ health concerns, limited access to childcare, and generous unemployment insurance benefits.” “A majority of districts reported sharp drops in manufacturing activity, and production was notably weak in auto, aerospace, and energy-related plants.” “Residential home sales plunged and construction activity also fell.” “Overall wage pressures were mixed – some firms cut wages, others raised them temporarily for the essential staff or to compete with unemployment benefits.” “Energy activity plummeted as firms announced oil well closures.” “Although many contacts expressed hope that overall activity would pick up as businesses reopened, the outlook remained highly uncertain.” “Most districts noted wage increases in high-demand and essential sectors, while wages were flat or declining in other sectors.” “Most district contacts were pessimistic about the potential pace of US economic recovery.” “Pricing pressures varied but were steady to down modestly on balance.” “Weak demand weighed on selling prices, with some contacts noting discounting for apparel, hotel rooms, and airfares.” “Supply chain disruptions and strong demand led to higher prices for some grocery items including meat and fresh fruit.” “One district reported that firms faced additional costs related to safety protocols and social distancing compliance.” Market reaction The US Dollar Index largely ignored these remarks and was last seen gaining 0.08% on the day at 99.10. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/JPY traders weigh a massive cocktail of mostly toxic risks FX Street 3 years Economic activity declined in all districts, falling sharply in most, reflecting disruptions associated with the COVID-19 pandemic, the Federal Reserve said in its Beige Book on Wednesday. Additional takeaways "Employment continued to decrease in all districts." "Consumer spending fell further as mandated closures of retail establishments remained largely in place during most of the survey period." "Securing PPP loans helped many businesses to limit or avoid layoffs." "Spending declines were especially severe in the leisure and hospitality sectors; auto sales were substantially lower than a year ago, although several districts noted recent improvement." "Employment continued to fall sharply in retail and in… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.