03:14 PM EDT, 04/17/2024 (MT Newswires) -- Economic activity in the US expanded slightly since late February, while the outlook was "cautiously optimistic," the Federal Reserve said in its latest Beige Book released Wednesday.

Ten of the 12 Fed districts reported either "slight or modest" growth during the period, up from eight in the previous report, according to the latest Beige Book, which was prepared by the Boston Fed based on information collected by April 8. Two districts reported no changes in economic activity since late February.

The previous report, which was released March 6, showed that US economic activity increased slightly since early January through late February, while the growth outlook was generally positive.

Consumer spending "barely" rose overall, with several reports of weakness in the discretionary category amid elevated price sensitivity among consumers, the latest Beige Book showed. "Disruptions in the Red Sea and the collapse of Baltimore's (Francis Scott Key Bridge) caused some shipping delays but so far did not lead to widespread price increases," according to the report. Contacts in several districts saw steep gains in insurance rates for both businesses and homeowners.

Contacts expected inflation to "hold steady at a slow pace" on balance, while contacts in a few districts perceived upside risks to near-term inflation, the document showed.

Manufacturing activity fell slightly, with only three districts seeing growth in the sector. Improved inventories and dealer incentives helped drive auto spending higher in some districts, though sales were "sluggish" in other districts, the Beige Book said. Residential construction saw "a little" uptick overall, while home sales strengthened in most districts.

Employment grew at a slight pace overall, with nine districts seeing "very slow to modest" gains, while the rest reported no changes, the document showed. Eight districts saw wages grow at a moderate pace, while the remaining four reported only "slight to modest" gains.

"On balance, contacts expected that labor demand and supply would remain relatively stable, with modest further job gains and continued moderation of wage growth back to pre-pandemic levels," according to the Beige Book.