US economic activity maintains slight to modest pace of growth: Fed's Beige Book

Economic activity in the US maintained a slight to modest pace of growth in most Fed districts during the latest reporting cycle, according to a Federal Reserve report released Wednesday.

"While seven Districts reported some level of increase in activity, five noted flat or declining activity—three more than in the prior reporting period," said the Fed's Beige Book, which gathers information on current economic conditions from the central bank's 12 districts across the nation.

"Wages continued to grow at a modest to moderate pace in most Districts, while prices were generally reported to have risen modestly," it added.

Most districts saw soft demand for consumer and business loans, and a few of them reported modest growth in employment, but skilled-worker availability remained a challenge across all districts.

Prices increased at a modest pace overall, while consumer spending was generally reported as showing little to no change in almost every district.

"Almost every district mentioned retailers discounting items or price-sensitive consumers only purchasing essentials, trading down in quality, buying fewer items, or shopping around for the best deals," said the report.

"Expectations for the future of the economy were for slower growth over the next six months due to uncertainty around the upcoming (presidential) election, domestic policy, geopolitical conflict, and inflation," it added.