Coronavirus latest: US services growth hits record high in May

 Coronavirus latest: US services growth hits record high in May

Labour shortages and supply-chain disruptions are hampering businesses across the country as the economic recovery from the coronavirus crisis accelerates.

The pace of the rebound picked up in April and May as consumer spending bounced back alongside higher vaccination rates and looser social-distancing measures, according to the Federal Reserve’s Beige Book report, which offers anecdotal evidence collected by the central bank’s regional counterparts about the health of the world’s largest economy.

Businesses in some cases struggled to meet this demand, however, given difficulties sourcing materials and workers.

“Manufacturers reported that widespread shortages of materials and labour along with delivery delays made it difficult to get products to customers,” the report said. “Similar challenges persisted in construction. Homebuilders often noted that strong demand, buoyed by low mortgage interest rates, outpaced their…

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