US economic activity has declined slightly, with half of the 12 Federal Reserve (Fed) districts reporting slight to moderate decline in activity, three reporting no change and three mentioning slight growth, according to the latest Fed Beige Book, a snapshot of the nation's economy.

This report, based on surveys, is published eight times every year.

All districts reported elevated levels of economic and policy uncertainty, which have led to hesitation and a cautious approach to business and household decisions.

Manufacturing activity declined slightly. Consumer spending reports were mixed, with most districts reporting slight declines or no change; however, some districts reported increases in spending on items expected to be affected by tariffs, a Fed release said.

Contacts generally expected so-far moderate price increases to accelerate, with a few describing the expected cost increases as ‘strong, significant or substantial’.

Tariffs remained a rising concern, along with uncertainty, impacting in particular prices but also expectations for growth.

Activity at ports was robust, while reports on transportation and warehouse activity in other areas were mixed.

"On balance, the outlook remains slightly pessimistic and uncertain, unchanged relative to the previous report," according to the document.

"There were widespread reports of contacts expecting costs and prices to rise at a faster rate going forward," it noted.

Employment has been little changed since the previous such report was released. Most districts described employment as flat, three districts reported slight-to-modest increases, and two reported slight declines.

Many districts reported lower employee turnover rates and more applicants for open positions. Comments about uncertainty delaying hiring were widespread. All districts described lower labour demand, citing declining hours worked and overtime, hiring pauses and staff reduction plans.

Some districts reported layoffs in certain sectors, but these layoffs were not pervasive. Wages continued to grow at a modest pace, although many districts reported a general easing in wage pressures. A few districts indicated that higher costs of living continued to put upward pressure on wages.

By Fibre2Fashion 
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