The US economy continues to expand and prices are rising at a slow clip despite reports of tightening labor markets and higher wages. That's according to the Federal Reserve's Beige Book survey published on Wednesday.

All but two of the 12 Fed districts reported at least a slight increase in economic activity. But the strong dollar is weighing on manufacturing in some districts.

The report notes improved retail sales and home construction in most regions. However, the manufacturing situation was mixed.

In addition, vehicle sales fell in most regions, which some say might be attributed to uncertainty surrounding the presidential election. Analysts are nearly unanimous in expecting a raise of the key benchmark interest rate in December, which would be the first hike in a year.