03:04 PM EDT, 07/17/2024 (MT Newswires) -- Economic activity in a majority of districts rose at a "slight to modest" pace since the middle of May, while overall growth in the coming months was expected to be slower amid uncertainty around inflation and the upcoming presidential election, the Federal Reserve said in its latest Beige Book released Wednesday.

Seven Fed districts reported "some level" of rise in economic activity, while five reported flat or falling levels, according to the latest Beige Book, which was prepared by the Richmond Fed based on information collected by July 8.

The previous report, which was released May 29, showed that the US saw continued expansion in economic activity from early April to mid-May, while the outlook was "somewhat more pessimistic."

"Prices increased at a modest pace overall, with a couple districts noting only slight increase," the latest Beige Book showed. "While consumer spending was generally reported as showing little to no change, 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." Most districts said input costs were starting to stabilize, according to the report.

Most districts said employment was unchanged or up slightly, while a few saw "modest" growth, the document showed. Employment in the manufacturing sector fell in several districts due to a slowdown in new orders. "Districts also reported widely disparate trends in manufacturing activity ranging from brisk downturn to moderate growth," according to the document.

Most districts reported a "modest to moderate" growth in wages, while several districts saw some slowing in gains amid increased worker availability and less competition for workers, the Beige Book showed.

Districts reported varied auto sales, with some saying sales were lower partly due to a cyberattack on dealerships and elevated interest rates. "Reports on residential and commercial real estate markets varied, but most banks reported only slight changes, if any, in recent weeks," the document showed.

Most districts reported "soft" demand for consumer and business loans, while spot rates surged amid tight capacity in ocean shipping, according to the report.

"Expectations for the future of the economy were for slower growth over the next six months due to uncertainty around the upcoming election, domestic policy, geopolitical conflict, and inflation," the Beige Book said.