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France Media Agency
“Reports on tourism are more optimistic, thanks to an increase in demand for leisure and travel,” notes the Fed in its Beige Book published on Wednesday, a study carried out among companies in the country questioned between the end of February and the 5 April.
They attribute the improvement in the situation in this sector particularly affected by the pandemic, among other things to the spring break, but also to relaxed restrictions in the face of COVID-19, the current vaccination campaign, and checks paid to many American households in March as part of the government’s stimulus package.
Businesses in the Boston area have observed that “scheduled flights are already on the increase. Hotel bookings and short-term rentals for summer stays are up sharply from their usual levels in April ”.
As a result, “occupancy rates, hotel room rates and short-term rental rates are on track to break records this summer.”
Across all industries, however, companies face supply challenges due to global disruptions in manufacturing and delivery.
And they saw the costs of raw materials and parts soar, which was “exacerbated” by the heavy snowfall that paralyzed part of the United States in February.
Costs “have increased in all areas, but especially in the manufacturing, construction, retail and transport sectors,” notes the Beige Book, citing in particular metals, wood, food and fuel.
This is a premise for inflation which started to show in March, and is expected to last for several months. As a consequence of the progress of manufacturing costs, the companies questioned “largely” reported an increase in the prices at which they sold their products.
For example, companies in the manufacturing and distribution sectors surveyed in the New York area have seen “large increases in their selling prices and their forecasted price increases in the coming months.”
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