Fed survey shows faster growth in US despite supply chain disruptions

The U.S. economy grew at a somewhat faster pace in April and May despite disruptions that choked supplies to the nations manufacturers, the Federal Reserve reported Wednesday, AP reports.

In the Fed’s latest survey of economic conditions around the nation, several of the central bank’s districts reported that increased vaccination rates and relaxed social-distancing measures were having a positive impact on the economy. But offsetting those gains were headwinds coming from supply-chain problems.

The increase in vaccination rates helped to boost consumer spending, especially in areas such as leisure travel and restaurant dining, the report said.

Factory output increased despite “significant supply chain challenges” that were continuing to disrupt production, it added.

The report also noted widespread examples of price increases, with the supply-chain disruptions adding to the price pressures.

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