(Bloomberg) -- Economic activity increased slightly in November after little change in preceding months, and US businesses grew more upbeat about demand prospects, the Federal Reserve said in its latest Beige Book survey.

“Though growth in economic activity was generally small, expectations for growth rose moderately across most geographies and sectors,” according to the report published Wednesday in Washington. “Business contacts expressed optimism that demand will rise in coming months. Consumer spending was generally stable.”

The Fed report had recently painted a bleaker picture of the economy than official government statistics, showing flat growth, lower hiring rates and only small increases in prices. In many cases that contradicts topline economic figures showing still-strong activity, powered by ample consumer spending and a relatively low unemployment rate.

The Fed’s districts reported that inflation was rising only modestly and companies had more trouble passing on higher costs as consumers grew more discerning about pricing.

Hiring was seen as subdued with low worker turnover, while layoffs were also limited. Business contacts said they expected steady to modest growth in employment.

“Wage growth softened to a modest pace across most Districts, as did expectations for wage growth in coming months,” the survey said.

The Beige Book, along with government data, will help shape the debate among Fed policymakers at their Dec. 17-18 meeting as they consider whether to lower interest rates for a third time.

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