War’s Impact on Firms Goes Beyond Energy Costs: Fed’s Beige Book

War in the Middle East has given US companies a headache that extends well beyond dealing with higher energy costs, the Federal Reserve said.

“The conflict in the Middle East was cited as a major source of uncertainty that complicated decision-making around hiring, pricing and capital investment, with many firms adopting a wait-and-see posture,” the central bank reported in its Beige Book survey of regional business contacts released Wednesday.

Despite that higher uncertainty, economic activity continued to increase at a slight-to-modest pace across most US regions, the Fed said.

Price growth remained moderate overall, but energy and fuel costs leapt ...