The U.S. economy continued to expand in September and early October, although higher energy costs constrained consumer and business spending.

That’s according to the latest issue of the Federal Reserve Banks’ Beige Book, the economic summary produced for the Fed’s open market committee meetings. It is based on information collected from the 12 Federal Reserve Districts up to Oct. 18.

The Fed reports that data on consumer spending were mixed by district and spending category. In contrast, business outlays appeared to pick up in most regions, with modest increases in both capital spending and hiring.

However, the Fed said, “many Districts said that high energy costs were constraining household spending, and some said the presidential election was heightening uncertainty among consumers.”

Residential real estate activity remained robust in most districts, although it slowed in some. Nonresidential activity was still relatively weak across the nation, though there were scattered signs of improvement, it says.

Manufacturing activity increased further since the last Beige Book. “Stronger activity was evident across a wide array of industry segments, though, on balance, producers of durable goods exhibited more strength than producers of non-durable goods,” it reports.

On the financial front, household loan demand seemed to soften somewhat, but business loan demand picked up, it says.

Businesses in most districts continued to express concern over the rising costs of energy and other inputs, although more manufacturers and business service providers were reportedly able to pass part–if not all–of these cost increases along to their customers, the report notes. However, increases in wages and retail prices generally were subdued.

Fall harvests were ahead of the normal pace, and yields of corn and soybeans were expected to set records in some Districts. Energy-related activities continued to increase, despite some disruptions caused by Hurricane Ivan.