02:37 PM EDT, 04/17/2024 (MT Newswires) -- The US economy grew slightly since late-February, with ten of the 12 Federal Reserve districts reporting "slight or modest" economic growth, up from eight in the previous report, with no changes in the other two regions, the Federal Reserve's Beige Book report, a summary of economic conditions released Wednesday, showed.

"Consumer spending barely increased overall, but reports were quite mixed across Districts and spending categories," according to the summary. "Several reports mentioned weakness in discretionary spending, as consumers' price sensitivity remained elevated. Auto spending was buoyed notably in some Districts by improved inventories and dealer incentives, but sales remained sluggish in other Districts."

Manufacturing activity declined slightly with only three districts reporting growth. Home building "increased a little, on average," while home sales improved in most regions.

However, nonresidential construction was flat and commercial real estate activity declined slightly.

Overall, the economic outlook was "cautiously optimistic, on balance."

Employment rose slightly while nine districts reported "very slow to modest" gains and the other three districts reporting no change. Most districts noted a rise in the supply of labor and several districts reported an improved ability to retain employees.

Still, a shortage of qualified workers remained, with wages rising at a moderate pace in eight districts and slight to modest gain in the other four districts. The outlook is for continued modest gains in employment and wage growth slowing back to levels seen before the pandemic.

Price increases were modest and in line with the pace seen in previous reports, the Beige Book showed. Some shipping delays were seen by disruptions in the Red Sea and the collapse of the Key Bridge in Baltimore but have not led to widespread price increases.

The ability of firms to pass through price increases to consumers has weakened, shrinking profit margins. Expectations are for inflation to hold steady at a slow pace, but a few districts reported concerns among manufacturing firms of upside risks to both input and output prices.

The Beige Book summary was prepared by the Federal Reserve Bank of Boston based on information collected on or before April 8.