The U.S. economy continued to expand at a modest pace since mid-January, the Federal Reserve said in its Beige Book report Wednesday.

Business contacts across the nation were generally optimistic about future economic growth, but the report revealed tepid conditions in a number of regions.

A few districts including New York described economic activity as flat, three districts reported “mixed” activity and Kansas City reported a modest slowdown.

Consumer spending increased in most places, although the Midwest noted some weakness.

Overall, manufacturing activity was flat amid diminished demand from the energy sector, which has been hurt by collapsing oil prices.

Labor market conditions continued to improve, with the majority of Districts reporting modest gains, and wages generally increased.

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