Reports Point to Modest Economic Growth in Minnesota
Undated (KROC-AM News) - There was a modest rebound in optimism about Minnesota’s manufacturing sector last month.
The respected Mid-America Business Conditions Survey of business supply managers shows the state’s overall economic index rose almost 5 points from April to 54.3. Any reading above 50 is an indicator of growth over the next few months. It was slightly below 50 in April.
The weakest component of the index was new orders at 50.5, while inventories was the strongest at 60.2. The employment index for May was 53.2.
Throughout the Midwest region, the overall index rose 2 points to 52.1 last month.
The Federal Reserve Beige Book report found evidence of modest economic growth in the region administered by the Federal Reserve Bank of Minneapolis. The report, which covers the past six weeks, found growth in the construction, real estate, manufacturing, and professional services areas, while consumer spending and tourism were mixed, mining was flat, and the agriculture and energy sectors were down.
The Fed also reported that labor markets remained tight, wage pressures were moderate and price pressures were low in Minnesota, the Dakotas, Montana and northern portions of Wisconsin and Michigan.