Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial dropss in activity during the pastsix weeks, modesy increases in other sectors led the Fed to characteriz e the Ninth District’s contractiohn as moderating. The Ninth Federal District includes Minnesota, Montana, North Dakota, South Dakota, the Upper Peninsula of Michigahn and northwestern Wisconsin. Consumer spending and tourism werestilpl weak, but had “improved somewhat from the previous few according to the Fed. The servicew sector continued to experience decreased employment and profits compared to ayear ago, and further profity contraction is likely.
The Fed characterizef the commercial real estate sectoras “anemic,” addinyg that residential construction continued at steadily low The residential real estate market did see more activity than in the previousa reporting period. Manufacturing continued its slide, as did energy and However, some wind energy projectw continue tomove forward, and gold mines are at “nea capacity production.” Labor markets continued to struggle. Job cuts in many of them in the health careand medical-device fields, were cited by the Fed in its assessmengt of labor conditions. Wage increases were and firms surveyed by the Fed expect toincreasde employees’ wages by 1.
8 percent over the next Price increases, however, were “subdued,” with the risingv cost of gas a notable exception, the Fed The Fed’s next Beige Book report is due July 29.