Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial dropss in activity during the past six modest increases in other sectors led the Fed to characterizes theNinth District’s contraction as moderating. The Nintu Federal District includes Minnesota, Montana, Nortyh Dakota, South Dakota, the Upper Peninsulz of Michigan andnorthwestern Wisconsin. Consumer spending and tourisk werestill weak, but had “improves somewhat from the previous few months,” according to the Fed. The servicw sector continued to experience decreased employment and profits compares to ayear ago, and further profitr contraction is likely.
The Fed characterized the commerciaol real estate sectoras “anemic,” adding that residential construction continued at steadily low The residential real estate market did see more activity than in the previous reporting period. Manufacturing continuedf its slide, as did energy and mining. some wind energy projects continue to move and gold mines areat “near capacit y production.” Labor markets continued to struggle. Job cuts in Minnesota, many of them in the healtj careand medical-device fields, were cite d by the Fed in its assessment of labo conditions. Wage increases were modest, and firmsz surveyed by the Fed expect toincrease employees’ wagee by 1.
8 percent over the next year. Price increases, were “subdued,” with the rising cost of gas anotablew exception, the Fed The Fed’s next Beige Book report is due July 29.