Beige Book Report Paints Weak Economy

Washington, DC, June 12, 2008--The Federal Reserve said that U.S. businesses have had only "mixed results" trying to raise selling prices with the economy still weak.

"Business contacts in most districts reported increases in input prices ... especially prices for energy, petroleum derivatives, metals, plastics, chemicals, and food," the Fed said in its Beige Book summary of economic conditions.

The report said manufacturers reported "some ability" to pass along their higher production costs to their customers, but suggested the heightened price pressures had not ignite a broad consumer inflation.

The report said economic activity was generally weak from late April through June 2, the period covered by the report.