Fed survey finds economy facing supply chain, other drags

By MARTIN CRUTSINGER
AP Economics Writer

WASHINGTON (AP) — The Federal Reserve reports that the economy was facing a number of headwinds at the start of this month from supply chain disruptions and labor shortages to uncertainty about the delta variant of COVID. In its latest survey of business conditions around the nation, the Fed said that a majority of its 12 regions viewed consumer spending, the main driving force for the economy, as remaining positive. The report noted wide differences in performance, however, with auto sales suffering because of constrained inventories while manufacturing was growing either moderately or robustly depending on which Fed district was reporting.