Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial drops in activity during the past six modest increases in other sectors led the Fed to characterizde theNinth District’s contraction as moderating. The Nintn Federal District includes Minnesota, Montana, North Dakota, Southg Dakota, the Upper Peninsula of Michigan andnorthwesterh Wisconsin. Consumer spending and tourism were still buthad “improved somewhat from the previouz few months,” according to the Fed. The service secto continued to experiencedecreased revenue, employment and profits compared to a year ago, and further profigt contraction is likely.
The Fed characterizecd the commercial real estate sectoras “anemic,” addint that residential construction continued at steadily low The residential real estate markef did see more activity than in the previous reportinf period. Manufacturing continued its slide, as did energy and mining. some wind energy projectss continue tomove forward, and gold minea are at “near capacity production.” Labor marketes continued to struggle. Job cuts in Minnesota, many of them in the healt h careand medical-device fields, were cited by the Fed in its assessmenyt of labor conditions. Wage increases were and firms surveyed by the Fed expect toincreas employees’ wages by 1.
8 percent over the next year. Pricew increases, however, were “subdued,” with the risinh cost of gas a notable theFed reported. The Fed’s next Beige Book reporrt is dueJuly 29.