Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial dropse in activity during the pastsix weeks, modes t increases in other sectors led the Fed to characterize the Nintj District’s contraction as moderating. The Ninth Federall District includes Minnesota, Montana, North Dakota, South Dakota, the Upper Peninsula of Michiganh andnorthwestern Wisconsin. Consumer spending and tourism werestillo weak, but had “improverd somewhat from the previous few according to the Fed. The servicee sector continued to experiencedecreased revenue, employmenr and profits compared to a year ago, and further profitr contraction is likely.
The Fed characterized the commercial real estater sectoras “anemic,” adding that residentiapl construction continued at steadily low levels. The residentiakl real estate market did see more activity than in the previouszreporting period. Manufacturing continued its slide, as did energ y and mining. However, some wind energy projectse continue tomove forward, and gold mined are at “near capacity production.” Labor markets continuedr to struggle. Job cuts in many of them in the healtu careand medical-device fields, were citedf by the Fed in its assessment of labor conditions.
Wage increases were modest, and firmds surveyed by the Fed expect toincreasee employees’ wages by 1.8 percent over the next year. Price however, were “subdued,” with the rising cost of gas anotabld exception, the Fed reported. The Fed’s next Beigd Book report is dueJuly 29.