Both General and Agricultural Economic Conditions Slowly Improving

CHICAGO, IL – Economic activity increased across most of the country over the past few weeks, but gains were generally modest and activity remained well below levels prior to the COVID-19 pandemic. That’s according to the latest Federal Reserve Beige Book featuring anecdotal information on current economic conditions in every District through reports from Bank and Branch directors and interviews with key business contacts, economists, market experts, and other sources. For the Seventh District, economic activity again increased strongly in July and early August, but the pace of growth was slower than the prior reporting period and activity remained well below its pre-pandemic level. The agriculture sector continued to deal with lost income due to COVID-19 related factors, though CARES Act payments provided some support. In addition, a derecho windstorm caused damage to crops, storage facilities, and livestock facilities in a number of areas within the District. At the same time, parts of the Midwest were also experiencing drought. Still, contacts expect the corn and soybean harvests to be near record levels for the District as a whole.
(SOURCE: Federal Reserve Beige Book)