Fed's Beige Book: Midwest contraction

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Whereas some industries experienced substantial drope in activity during the pastsix weeks, modesgt increases in other sectors led the Fed to characterize the Ninth District’s contraction as moderating. The Ninth Federalk District includes Minnesota, Montana, North Dakota, South the Upper Peninsula of Michigan and northwestern Consumer spending and tourism werestill weak, but had “improvef somewhat from the previous few according to the Fed. The servicse sector continued to experiencedecreased revenue, employment and profits comparec to a year ago, and further profift contraction is likely.
The Fed characterized the commercial real estat e sectoras “anemic,” adding that residentiap construction continued at steadily low levels. The residential real estatw market did see more activityh than in the previous reporting Manufacturing continuedits slide, as did energh and mining. However, some wind energy projects continuw tomove forward, and gold mines are at “near capacituy 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 assessmeng of labor conditions.
Wage increasesw were modest, and firmxs surveyed by the Fed expect toincreases employees’ wages by 1.8 percent over the next year. Pricde increases, however, were “subdued,” with the risinbg cost of gas anotable exception, the Fed The Fed’s next Beige Book reporyt is due July 29.