The U.S. economy remained “generally weak” heading into summer, as rising costs for energy and food hurt consumers and forced some companies to raise their prices, the Federal Reserve (Fed) said in a report Wednesday. The central bank's report, called the Beige Book for the color of its cover, highlighted weak economic growth as well as high energy and food prices. Rising prices carry the risk of both spreading inflation and slowing overall economic growth. According to the report, “consumer spending slowed … as incomes were pinched by rising energy and food prices.” Manufacturing activity was “generally soft,” and the housing market remained in a deep slump. U.S. businesses also were hit by higher costs, especially for energy, metals, plastics, chemicals, and food. Such reports were “widespread,” the Fed said. Manufacturers in several areas “noted some ability to pass along higher costs to customers,” while retailers reported “mixed results with respect to raising final goods prices.”
