The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, was released Wednesday afternoon.

The Fed said three districts reported slight to modest growth in activity, five reported no change, and four noted a slight softening.

The report said overall consumer spending has edged down in recent weeks, although auto sales were boosted in some districts by strong demand for electric vehicles ahead of the expiration of a federal tax credit at the end of September.

On the inflation front, the Beige Book said prices rose further during the reporting period, with several district reports indicating input costs increased at a faster pace due to higher import costs and the higher cost of services.

The report also said employment levels were largely stable in recent weeks, while demand for labor was generally muted across districts and sectors.

In most Districts, more employers reported lowering head counts through layoffs and attrition, with contacts citing weaker demand, elevated economic uncertainty, and, in some cases, increased investment in artificial intelligence technologies, the Fed said.

Looking ahead, the Fed said the outlook for future economic growth varied by district and sector, as sentiment improved in some districts but others continued to expect elevated uncertainty to weigh down activity.

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