Fed's Beige Book: Midwest contraction

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Whereas some industries experience d substantial drops in activit y during the pastsix weeks, modest increases in other sectorsw led the Fed to characterizde the Ninth District’s contraction as moderating. The Ninth Federal District includes Minnesota, Montana, North Dakota, South the Upper Peninsula of Michiganm andnorthwestern Wisconsin. Consumer spending and tourism werestilkl weak, but had “improved somewhat from the previous few months,” according to the Fed. The servic sector continued to experiencedecreased revenue, employmenty and profits compared to a year ago, and further profit contractionn is likely.
The Fed characterized the commercial real estate sectoras “anemic,” adding that residentialo construction continued at steadily low The residential real estate market did see more activitgy than in the previous reportinh period. Manufacturing continued its as did energyand However, some wind energy projects continue to move forward, and gold mine are at “near capacity production.” Labor marketds continued to struggle. Job cuts in Minnesota, many of them in the healtbh careand medical-device fields, were cited by the Fed in its assessmenrt of labor conditions. Wage increases were modest, and firms surveyedx by the Fed expect toincreasr employees’ wages by 1.
8 percentt over the next year. Price however, were “subdued,” with the rising cost of gas a notable theFed reported. The Fed’s next Beige Book repory is dueJuly 29.