Conditions in the US economy deteriorated in the month to July 14, the Federal Reserve said on Wednesday, as American consumers and businesses continued to struggle with rising prices, tight credit and slow growth.

According to the “beige book”, which summarises anecdotal evidence provided to the US central bank, “the pace of economic activity slowed somewhat since the last report [on June 11]”. It said that in particular five districts on the east coast, from Boston to Atlanta and including New York, had experienced a “softening or weakening” in their economies.