WASHINGTON (Reuters) - The U.S. economy continued to expand from mid-April to early June, but there were signs of slowing growth and inflation, the Federal Reserve said on Wednesday.
"High energy costs were fueling price increases in manufacturing and, to a much lesser extent, retail," the Fed said in its "beige book" summary of economic conditions.
Reports of costs being passed forward varied but were more prevalent than in the last report in April, the Fed said.
Businesses across the country expressed concern about high or rising costs. Pressures from higher costs were pushing up selling prices for manufacturers in several districts.
Meanwhile, the Boston, Dallas and Philadelphia districts reported that retailers were successfully raising prices.
Labor markets continued to tighten across much of the country, and salaries continued to rise, the Fed said. But wage pressures were reported to have intensified in only the Dallas, Kansas City and Philadelphia districts.
At the same time, residential housing markets continued to cool in most regions, although commercial real estate activity strengthened, the Fed said.
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