Economic activity continued expanding at a "modest to moderate pace," according to the latest Beige Book report, released by the Federal Reserve Wednesday.

"Eight Districts reported similar growth rates in economic activity as during the previous reporting period, while growth slowed some in the Philadelphia, Richmond, Chicago, and Kansas City Districts," according to the report, which covers September and early October.

Cautious optimism remained about future prospects, despite "an increase in uncertainty due largely to the federal government shutdown and debt ceiling debate."

Consumer spending saw a modest increase in most districts, while travel and tourism sector expanded, with Atlanta, Boston and New York described as "particularly upbeat."

Business spending improved "modestly" and payrolls also saw modest growth, as contacts "were cautious to expand payrolls, citing uncertainty surrounding the implementation of the Affordable CareAct and fiscal policy more generally."

Demand for nonfinancial services grew.

In manufacturing, "Cleveland, St. Louis, and Minneapolis experienced faster growth, while New York, Richmond, and Chicago saw growth weaken," while activity overall "expanded modestly."

Inflation was not a concern as the report said, "Price and wage pressures were again limited."

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