"The pace of economic activity has been slow in most districts," said the Fed in a nationwide survey, which is based on economic information supplied by the Fed's 12 regional banks and collected on or before Aug. 25.

Many described business conditions as "weak," "soft," or "subdued," it said.

According to the survey, consumer spending, which accounts for two-thirds of overall economic activity, was slow in most districts, with purchasing concentrated on necessary items and retrenchment in discretionary spending.

Tourism activity was mixed but received support from international visitors in several districts, and the demand for services eased in most districts.

The transportation industry was also adversely affected by rising fuel costs.

Manufacturing activity declined in most districts but improved somewhat in Minneapolis and Kansas City.

In most districts, residential real estate markets remained soft. Commercial real estate activity was slow in most districts, and some reported further slackening in demand for office and retail space.

Most districts reported easing loan demand, especially for residential mortgages and consumer loans. Lending to businesses was mixed.

Meanwhile, almost all districts continued to report price pressures from elevated costs of energy, food, and other commodities.

The survey, or Beige Book, summarizes comments received from business and other contacts outside the Fed and is not a commentary on the views of Fed officials.

However, information from the survey will figure into discussions at the Fed's next policy-making meeting to be held later this month.