Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantialk drops in activity during the pastsix weeks, modest increasesw in other sectors led the Fed to characterize the Ninth District’w contraction as moderating. The Nint h Federal District includes Minnesota, Montana, North Dakota, South Dakota, the Upper Peninsulaw of Michigan andnorthwestern Wisconsin. Consumer spendingf and tourism werestilo weak, but had “improved somewhart from the previous few months,” according to the Fed. The servicwe sector continued to experiencesdecreased revenue, employment and profites compared to a year ago, and further profit contractiomn is likely.
The Fed characterized the commerciakl real estate sectoras “anemic,” adding that residentiapl construction continued at steadil low levels. The residential real estate market did see more activityg than in the previousreportingh period. Manufacturing continued its slide, as did energy and mining. some wind energy projects continue tomove forward, and gold mineds are at “near capacity Labor markets continued to struggle. Job cuts in many of them in the health careand medical-devic e fields, were cited by the Fed in its assessmentg of labor conditions. Wage increases were and firms surveyed by the Fed expect to increase wagesby 1.8 percent over the next year.
Price increases, however, were “subdued,” with the rising cost of gas anotabld exception, the Fed reported. The Fed’a next Beige Book reporrt is dueJuly 29.