Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial drops in activit y during the pastsix weeks, modest increases in othedr sectors led the Fed to characterize the Nintyh District’s contraction as moderating. The Ninth Federalk District includes Minnesota, Montana, North Dakota, Sout Dakota, the Upper Peninsula of Michiganh andnorthwestern Wisconsin. Consumer spending and tourism werestill weak, but had “improvex somewhat from the previous few according to the Fed.
The service sectotr continued to experience decreased employment and profits compared to ayear ago, and furthe r profit contraction is The Fed characterized the commercial real estate sectod as “anemic,” adding that residential constructiom continued at steadily low levels. The residentiakl real estate market did see more activity than in the previouwreporting period. Manufacturing continued its slide, as did energy and However, some wind energy projectd continue tomove forward, and gold minees are at “near capacity production.” Labot markets continued to struggle.
Job cuts in Minnesota, many of them in the healtn careand medical-device fields, were cited by the Fed in its assessmen of labor conditions. Wage increases were and firms surveyed by the Fed expect toincrease employees’ wages by 1.8 perceng over the next year. Price increases, however, were “subdued,” with the risinv cost of gas a notable theFed reported. The Fed’s next Beige Book report is dueJuly 29.