US economy showing growth this spring - KWWL - Eastern Iowa Breaking News, Weather, Closings

US economy showing growth this spring

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WATERLOO (KWWL) -

The Federal Reserve says the U.S. economy showed improvement this spring throughout the country, but higher oil prices remain a concern.

Factories were busier, consumers spent more and companies boosted hiring in all 12 regions surveyed by the Fed. But the Fed also notes in a new report that high energy prices are putting pressure on businesses to raise their prices. Also, workers are not seeing wage increases because they lack leverage in the tight jobs market.

Scant wage gains are a major reason Federal Reserve Chairman Ben Bernanke says inflation won't spread through the economy this year.  Bernanke and a majority of federal officials also predict that the surge in oil prices will lead only to modest and short-lived increase in consumer prices.

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