9th District - Minneapolis

Regional Federal Reserve Banks

The Ninth District economy grew slightly since the last report. Modest increases in activity were noted in tourism, mining and commercial real estate. Activity in manufacturing, commercial construction, agriculture and energy was mixed. Overall labor markets softened slightly since the last report; nevertheless, some industries reported difficulty finding qualified workers. Wages increased moderately, while significant price increases were noted for fuel and energy; lumber prices were lower. View full report.

Construction and Real Estate

Commercial construction was mixed. Some contractors noted that the number of open bids was down and that competition has intensified. A 200-acre biotechnology research complex was under development near Rochester, Minn. The value of June commercial building permits in Sioux Falls, S.D., was up 5 percent from a year ago. Residential construction remained slow. June residential permits were down 51 percent from year-earlier levels in Minneapolis-St. Paul; permits were flat in Fargo, N.D.

Energy and Mining

Growth in the mining industry continued since the last report, as construction on a new mine began in Montana and an iron ore processing line reopened in Northern Minnesota.

Employment, Wages and Prices

Overall labor markets softened slightly since the last report; nevertheless, some industries reported difficulty finding qualified workers.

In North Dakota, difficulty finding qualified trades workers for jobs at coal operations is expected to increase during the next few years as more construction projects come online and retirements increase. Wage increases were moderate.

Significant price increases were noted for fuel and energy; while lumber prices were lower. A number of fuel surcharges were being placed on top of transportation and some raw materials prices.