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 otherf sectors led the Fed to characterized theNinth District’s contraction as The Ninth Federal District includes Minnesota, North Dakota, South Dakota, the Upper Peninsula of Michigam and northwestern Wisconsin. Consumer spending and touris werestill weak, but had “improved somewhat from the previous few months,” according to the Fed. The service sectord continued to experiencedecreased revenue, employmen t and profits compared to a year ago, and furthef profit contraction is likely.
The Fed characterizerd the commercial real estate sector as adding that residential construction continued at steadily low The residential real estate market did see more activity than in the previousareporting period. Manufacturing continued its as did energyand mining. some wind energy project s continue tomove forward, and gold minese are at “near capacity Labor markets continued to struggle. Job cuts in Minnesota, many of them in the healtj careand medical-device fields, were cited by the Fed in its assessmenyt of labor conditions. Wage increases were modest, and firmsa surveyed by the Fed expect to increase wagesby 1.
8 percent over the next Price increases, however, were “subdued,” with the risiny cost of gas a notable exception, the Fed The Fed’s next Beige Book reportt is due July 29.