Economic activity declined slightly in the United States in recent weeks, indicating that tariffs and elevated uncertainty are rippling across the economy, according to the Federal Reserve’s Beige Book survey of regional business contacts. “All districts reported elevated levels of economic and policy uncertainty, which have led to hesitancy and a cautious approach to business and household decisions,” according to the report published Wednesday.

Meanwhile, prices increased at a “moderate” pace in the U.S., the report said. And “there were widespread reports of contacts expecting costs and prices to rise at a faster rate going forward.” A few regions expected these increases to be “strong, significant, or substantial.” The report noted that firms with plans to pass along tariff-related costs to consumers expect to do so within three months.