Signs of wage increases are evident as the region's businesses continue to cope with labor shortages. Construction and Real Estate Construction continues to provide momentum. In homebuilding, housing units authorized increased in all district states, except Montana, for the three-month period ending in June compared with a year earlier. A major Minneapolis property developer claims that the real estate market will remain healthy, but cautions that certain property types and regions within the area might see higher vacancy rates as new space becomes available. Consumer Spending and Tourism Consumers and tourists continue to provide considerable thrust to the district economy.
Consumer confidence is strong in Montana, says a branch bank director.
A mall manager in Minneapolis reports recent retail sales are up more than 10 percent compared with a year earlier. Three retail centers in a county near Minneapolis are currently undertaking major expansions. Most auto dealers in metropolitan areas of western Montana and South Dakota report strong sales, with slower sales in agricultural areas. Some South Dakota dealers describe the past six months as the best they've had since the 1980s, according to a representative of an auto dealer association. Summer tourism has picked up since the Fourth of July after a slow start due to wet weather.