SOURCE: Wall Street Journal

The Fed's Beige Book report paints a gloomy picture: the economy is slowing down, particularly in the manufacturing and housing sectors, while pricing pressure is going up.

Despite the $107 billion in economic-stimulus checks that have been doled out to millions of Americans since late April, the report said consumer spending was reported as mixed, weak or slowing in nearly all districts.

The report also shows that tighter credit standards and tough real-estate conditions are beginning to pinch commercial real-estate activity. Several regions cited tightened financing as a constraint on business.

Across the country, companies reported rising prices, particularly for fuel, metals, food, chemicals and other petroleum-based materials. The grim outlook for consumer spending has put many companies in a tough spot, as they worry that raising prices to compensate for higher costs will correspond to a "decrease in customer demand and overall sales volume," the report noted.

Subscriber Only Version »