Conditions remain sluggish in the U.S. economy according to the Federal Reserve Board’s Beige Book released Wesdnesday.

The report heightens speculation that the Fed may move to cut U.S. interest rates again.

“Although reports from the 12 Federal Reserve Districts indicated some signs of increased economic activity in April and May, conditions remained sluggish in most Districts,” the report said. However, no District report suggested that economic conditions had deteriorated since the last Beige Book.

Economic activity increased or showed signs of improving in the Dallas, Kansas City, New York, and Minneapolis Districts. The Philadelphia and Cleveland reports characterized activity as mixed, while other Districts generally saw sluggish, subpar, or subdued economic growth, the Fed reported.

“The unwinding of war-related concerns appears to have provided some lift to business and consumer confidence, but most reports suggested that the effect has not been dramatic,” it said. The Fed indicated that consumer spending remained lackluster; retail sales rebounded, but sales remained below the level of a year ago; manufacturing activity was mixed; and, service sector reports suggested sluggish activity overall.

“Low mortgage rates continue to stimulate residential construction and home sales in most Districts, but commercial construction and real estate markets were still weak,” it said. “The energy industry continued to strengthen. Agricultural production was impaired by wet weather in some areas. Most Districts continued to report weakness in labor markets and some downward pressure on wages, although benefit costs continued to increase.”