02:21 PM EDT, 07/16/2025 (MT Newswires) -- US economic activity "increased slightly" from the period of late-May through early-July, but activity was uneven across the districts, the Federal Reserve's Beige Book report, a summary of economic conditions released Wednesday, showed.

"Five Districts reported slight or modest gains, five had flat activity, and the remaining two Districts noted modest declines in activity," according to the summary. "That represented an improvement over the previous report, in which half of Districts reported at least slight declines in activity."

Businesses remain cautious due to heightened uncertainty, while consumer spending declined in most districts. At the same time, manufacturing activity was lower and home sales were little changed in most areas.

"The outlook was neutral to slightly pessimistic, as only two Districts expected activity to increase, and others foresaw flat or slightly weaker activity," the summary showed.

Employment rose "very slightly" overall as uncertainty restrained hiring. Also, more districts noted a shortage of skilled workers for certain trade, with a reduction in the availability of foreign-born workers.

Wages increased modestly and reports of layoffs were limited. The outlook is for more of the same as businesses navigate the uncertainty.

Prices were up in all districts, with seven of the 12 reporting moderate price growth and the other five seeing it as modest. Input costs were higher due to tariffs, with many firms passing on some of the costs to consumers where possible.

Cost prices are expected to remain elevated in the coming months, which could lift consumer prices in the late summer.

The Beige Book summary was prepared at the Federal Reserve Bank of Boston based on information collected on or before July 7.