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The other two districts reported no changes in activity.
Consumer spending barely increased overall, but reports were quite mixed across districts and spending categories, the Beige Book, published eight times every year, said.
Several reports mentioned weakness in discretionary spending, as consumers' price sensitivity remained elevated.
Manufacturing activity declined slightly, as only three Fed districts reported growth in the sector. Commercial real estate leasing fell slightly.
The economic outlook among contacts was cautiously optimistic, on balance.
Employment rose at a slight pace overall, with nine districts reporting very slow to modest increases, and the remaining three reporting no changes in employment.
Most Districts noted increases in labour supply and in the quality of job applicants. Several Districts reported improved retention of employees, and others pointed to staff reductions at some firms.
Wages grew at a moderate pace in eight districts, with the remaining four noting only slight to modest wage increases. Several districts said that annual wage growth rates had recently returned to their historical averages.
Price increases were modest, on average, running at about the same pace as in the last Beige Book. Disruptions in the Red Sea and the collapse of Baltimore's Key Bridge caused some shipping delays but so far did not lead to widespread price increases.
Movements in raw materials prices were mixed, but six districts noted moderate increases in energy prices.
Sharp increases in insurance rates was noted for both businesses and homeowners.
Firms' ability to pass cost increases on to consumers had weakened considerably in recent months, resulting in smaller profit margins. Inflation also caused strain at non-profit entities, resulting in service reductions in some cases.
On balance, contacts expected that inflation would hold steady at a slow pace moving forward.
At the same time, contacts in a few districts—mostly manufacturers—perceived upside risks to near-term inflation in both input prices and output prices.
Fibre2Fashion News Desk (DS)