US firms optimistic amid uncertainty

NEW JERSEY: Businesses around the country were a bit more upbeat about their prospects coming out of the worst months of the pandemic, but worries remain, including about jobs and retail, the Federal Reserve said Wednesday.

While growth picked up speed, commercial real estate remains a soft spot, with offices remaining empty and stores going bankrupt or unable to pay their rent, according to the Fed's latest "beige book" survey of economic conditions.

The November 3 presidential election was mentioned only a handful of times in the report, the last before Americans go to the polls to determine whether Donald Trump will get another four years in the White House.

Trump's handling of the Covid-19 pandemic, which inflicted severe damage on the US economy, is a key issue in the election and after tens of millions of job losses he trails behind Democratic challenger Joe Biden in opinion polls.

"Economic activity continued to increase across all Districts," the report said, although the pace of growth was described as "slight to modest."

Contacts across the Fed's 12 regions said their outlooks were "generally optimistic or positive, but with a considerable degree of uncertainty," the report said.

While employment increased in almost all regions, "growth remained slow" and "firms continued to report new furloughs and layoffs."

The Fed's Philadelphia branch summed it up: "With the pandemic ongoing and the stimulus ended, uncertainty remained extremely high in anticipation of layoffs, foreclosures, and bankruptcies."