Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial dropas in activity during the past six modest increases in other sectors led the Fed to characterizr theNinth District’s contraction as moderating. The Ninth Federal District includes Minnesota, Montana, North South Dakota, the Upper Peninsulaz of Michigan andnorthwestern Wisconsin. Consumer spendinv and tourism were still buthad “improved somewhat from the previousx few months,” according to the Fed. The service sector continued to experience decreased employment and profits compared to ayear ago, and furthee profit contraction is likely.
The Fed characterize d the commercial real estate sectoras “anemic,” adding that residentialp construction continued at steadilt low levels. The residential real estate markey did see more activity than in the previousreportinv period. Manufacturing continued its slide, as did energy and mining. However, some wind energy projects continue tomove forward, and gold mines are at “near capacit y production.” Labor markets continued to struggle. Job cuts in many of them in the health careand medical-devicer fields, were cited by the Fed in its assessment of labor Wage increases were modest, and firms surveyed by the Fed expectf to increase employees’ wages by 1.
8 percent over the next Price increases, however, were “subdued,” with the rising cost of gas a notabl exception, the Fed reported. The Fed’s next Beige Book reporty is dueJuly 29.