The U.S. economic recovery slowed and prices continued rising over the summer as a resurgence of Covid-19 cases linked to the Delta variant led consumers to pare back spending and persistent supply chain problems hampered businesses, the Federal Reserve said in a report Wednesday.

“The deceleration in economic activity was largely attributable to a pullback in dining out, travel, and tourism in most Districts, reflecting safety concerns due to the rise of the Delta variant,” the report said. The report, known as the Beige Book, collects anecdotes from businesses around the country.

In New York City, for instance, the rise of the Delta variant forced the cancellation of summer events such as the Fancy Foods Show and the Auto Show. In Minneapolis, the commercial real-estate industry, which had expected to benefit from workers returning to the office in the fall, saw those hopes dashed when firms postponed those plans. And in San Francisco, the residential real-estate market sagged slightly as would-be buyers put off their home searches in part because of the Delta variant.

Supply problems and a shortage of available workers also held back growth in some sectors, such as auto and home sales, the Fed said. Many respondents told the Fed that shipping delays and higher freight costs have harmed their businesses.

In the Richmond, Va., area, one retailer said it was forced to refund several bridal parties when wedding dresses didn’t arrive on time. In the Philadelphia area, one restaurant owner rented its own refrigerated trucks to deliver food to its locations after larger distributors delayed deliveries. A construction company in the St. Louis area said the steel joists it orders now wouldn’t arrive until spring of 2022.

The shortage of computer chips held back auto sales while high prices and a lack of homes to sell restrained the real-estate sector, the report said.

Firms also continued to struggle with finding workers, prompting many to raise wages and offer more-flexible schedules. A trucking company in the Cleveland area said it had already offered five wage increases so far this year.

Those problems have pushed up prices. Many respondents to the Fed survey said they “anticipate significant hikes in their selling prices in the months ahead.”

The combination of headwinds has pressured employers and employees.

“Reports of burnout are rising among workers and owners alike,” the report said, noting that many restaurant and retail owners in the Philadelphia area had had to pick up shifts behind the counter or in the kitchen.

“Some contacts also noted a rising number of belligerent customers,” the report said.

As the Delta variant sweeps the globe, scientists are learning more about why new versions of the coronavirus spread faster, and what this could mean for vaccine efforts. The spike protein, which gives the virus its unmistakable shape, may hold the key. Illustration: Nick Collingwood/WSJ The Wall Street Journal Interactive Edition

Write to David Harrison at david.harrison@wsj.com