03:21 PM EDT, 06/04/2025 (MT Newswires) -- US economic activity "declined slightly" since late April as higher tariffs put upward pressure on prices, the Federal Reserve said in its latest Beige Book released Wednesday.

Six of the 12 Fed districts reported decreases in activity, while three reported growth. The remaining three districts reported no change in activity, according to the document, prepared by the St. Louis Fed based on data collected by May 23.

"All districts reported elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions," the Beige Book showed.

The previous report, which was released April 23, showed that economic activity in the US was little changed since early March, while the outlook in several districts "worsened considerably" amid elevated economic uncertainty.

Prices have risen at a "moderate" rate since the previous report, the Wednesday document showed.

"All district reports indicated that higher tariff rates were putting upward pressure on costs and prices," according to the Beige Book. "However, contacts' responses to these higher costs varied, including increasing prices on affected items, increasing prices on all items, reducing profit margins, and adding temporary fees or surcharges."

Contacts project costs and prices to grow at a faster pace in the future.

Federal Reserve Governor Lisa Cook said Tuesday that price increases due to tariffs may impede progress on inflation that remains "somewhat" above the central bank's 2% goal.

After agreeing last month to suspend most tariffs on each other's imports, the US and China recently accused each other of violating their preliminary trade deal. In an early Wednesday social media post, US President Donald Trump said that his Chinese counterpart, Xi Jinping, was "extremely hard to make a deal with."

In April, Trump declared a 90-day pause on certain tariffs for countries that didn't retaliate to his reciprocal duties.

Employment was "little changed" since the last Beige Book release, while wages continued to rise at a modest rate, the Wednesday report showed. "All districts described lower labor demand, citing declining hours worked and overtime, hiring pauses, and staff reduction plans," the Beige Book showed.

"On balance, the outlook remains slightly pessimistic and uncertain, unchanged relative to the previous report," the latest Beige Book said. "However, a few district reports indicate the outlook has deteriorated, while a few others indicate the outlook has improved."