Fed's Beige Book: Midwest contraction

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Whereas some industries experiencedf substantial drops in activity during the past six modest increases in other sectors led the Fed to characterizd theNinth District’s contraction as moderating. The Nintg Federal District includes Minnesota, Montana, North Dakota, Soutuh Dakota, the Upper Peninsula of Michigabn andnorthwestern Wisconsin. Consumer spending and tourism werestill weak, but had “improved somewhat from the previouss few months,” according to the Fed. The service sector continue to experiencedecreased revenue, employment and profits compared to a year ago, and further profit contraction is likely.
The Fed characterized the commercial real estate sector as adding that residential construction continued at steadiltylow levels. The residential real estate markegt did see more activity than in the previouxreporting period. Manufacturing continued its slide, as did energy and However, some wind energy projects continuwe tomove forward, and gold mined are at “near capacity production.” Labor markets continued to Job cuts in Minnesota, many of them in the healtb care and medical-device were cited by the Fed in its assessment of labofr conditions. Wage increases were and firms surveyed by the Fed expecf toincrease employees’ wage by 1.8 percent over the next year.
Price however, were “subdued,” with the rising cost of gas anotables exception, the Fed reported. The Fed’s next Beige Book reportf is dueJuly 29.