WASHINGTON (AP) — The Federal Reserve says business contacts in many regions of the country expressed less optimism amid a host of adverse developments, from plunging stock prices to uncertainty about a widening trade war.

In its latest report on economic conditions around the country, the Fed says that eight of its 12 regions reported the economy was expanding at a moderate pace as the new year began.

While the outlook remained generally positive, the report says that business executives had grown more worried about "increased financial market volatility, rising short-term interest rates, falling energy prices and elevated trade and political uncertainty."

The report, known as the beige book, says a few districts experienced a slowdown in economic activity.