02:38 PM EDT, 06/04/2025 (MT Newswires) -- US economic activity "declined slightly" in recent weeks, the Federal Reserve said Wednesday in its Beige Book summary.

"Half of the districts reported slight to moderate declines in activity, three districts reported no change, and three districts reported slight growth," according to the summary. "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 was prepared at the Federal Reserve Bank of St. Louis based on information collected on or before May 23. The previous summary was published April 23.

Consumer spending reports were mixed with most districts reporting slight declines or no change while others reported that items expected to be impacted by tariffs were in high demand. Manufacturing activity declined slightly.

Home sales activity was little changed, and most districts reported new home construction was flat to declining.

The outlook showed slight pessimism and uncertainty, little changed from the previous report.

Employment was little changed since the previous report, the Beige Book showed, with most of the districts reporting flat employment, three reported small increases and two reporting declines.

There was lower labor turnover reported and hiring was delayed due to uncertainty. Some districts reported layoffs in certain sectors, but layoffs were not widespread.

Wages grew at a modest pace though many districts reporting an easing of wage pressures.

Prices increased moderately since the last report, and there were reports of increased inflation expectation that were described as "strong, significant or substantial.

All districts reported that tariffs were putting upward pressure on costs and prices, with varied responses by businesses that ranged from charging higher prices to accepting lower profit margins.