U.S. economy improves, but not by much: Fed's Beige Book

The U.S. economy improved in almost all U.S. regions as stay-at-home measures eased during June and early July, but it's still nowhere near pre-pandemic levels, the Federal Reserve said in its Beige Book report.

"Outlooks remained highly uncertain as contacts grappled with how long the COVID-19 pandemic would continue and the magnitude of its economic implications," the report said.

While many industries improved from a depressed level, energy sector activity continued to decline amid tepid demand and oversupply.

Financial conditions in the agricultural sector also remained poor.

Notes that the Paycheck Protection Program and loan deferrals by private lenders reportedly provided many firms with sufficient liquidity for the near term.

Employment increased on net in almost all districts as many businesses reopened or increased activity, specifically with gains in retail, leisure, and hospitality sectors; payrolls, though, were still under pre-pandemic levels.

Here's one observation that implies it will take awhile for the economy to come back — "Contacts in nearly every district noted difficulty in bringing back workers because of health and safety concerns, childcare needs, and generous unemployment insurance benefits," according to the report.

As for inflation, prices were little changed during the period covered by the report.

The report is based on information collected on or before July 6, 2020.