The U.S. economy grew at a somewhat faster pace in April and May despite widespread shortages of labor and materials that left many businesses struggling to keep up with demand, the Federal Reserve reported Wednesday.
In the Fed’s latest survey of economic conditions around the nation, several of the central bank’s districts reported that businesses were choked by a lack of willing and available workers and supply-chain problems.
Manufacturers reported to officials at regional Fed banks that widespread shortages of materials and labor along with delivery delays made it difficult to get products to customer. Construction industry executives said they struggled to keep up with very high housing demand due to a lack of workers, in some places reducing sales.
Businesses said they found it difficult new workers, especially low-wage hourly workers, truck drivers, and skilled tradespeople, forcing them to reduce output and cut hours of operation. From Boston