NEW YORK (CNNMoney) -- Businesses are passing on surging costs to consumers. Hiring is modest. Wages are barely rising. The housing market is still struggling.
But the economy is expanding at a"modest to moderate pace", the Federal Reserve said.
That's the picture from the Fed's Beige Book report released Wednesday.
Retailers and manufacturers across all 12 of the Federal Reserve's districts said they're seeing higher input costs. That's no surprise given surging prices on everything from oil to food lately.
But while they told the Fed they're already passing on some of those costs to customers, homebuilders -- especially in the Cleveland and Atlanta districts -- are not, most likely due to the troubled housing market.
Both commercial and residential construction continues to be one of the slower segments of the economy, while manufacturers, retailers and financial firms reported slight growth.
Meanwhile, it's still tough to get credit, and in some regions, banks are actually tightening their standards.
The Fed reported little evidence of wages increasing in most of its districts.
The report echoes recent comments from Fed Chairman Ben Bernanke, who acknowledges rising prices are impacting the average American, but not yet at a level that will derail the recovery.
Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More
Honda and General Motors are creating a new generation of fully autonomous vehicles. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
Whether you hedge inflation or look for a return that outpaces inflation, here's how to prepare. More