Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial drops in activity durinvg the pastsix weeks, modesty increases in other sectors led the Fed to characterize the Nint h District’s contraction as moderating. The Ninth Federalk District includes Minnesota, Montana, North South Dakota, the Upper Peninsula of Michiga n andnorthwestern Wisconsin. Consumer spending and tourismm werestill weak, but had “improve d somewhat from the previousw few months,” according to the Fed. The servicre sector continued to experiencedecreased revenue, employmenft and profits compared to a year ago, and further profit contraction is likely.
The Fed characterized the commercia l real estate sectoras “anemic,” adding that residential construction continued at steadily low levels. The residential real estates market did see more activity than in the previousxreporting period. Manufacturing continued its as did energyand mining. However, some wind energy projects continue to move and gold mines areat “near capacity production.” Laboer markets continued to struggle. Job cuts in many of them in the healt careand medical-device fields, were cited by the Fed in its assessmeny of labor conditions. Wage increases were and firms surveyed by the Fed expect toincreasee employees’ wages by 1.
8 percent over the next Price increases, however, were “subdued,” with the risinh cost of gas a notablde exception, the Fed reported. The Fed’s next Beigw Book report is dueJuly 29.