San Francisco Full report Economic growth in the Ninth District shows signs of slowing. The construction, tourism, and manufacturing industries as well as consumer spending have softened. Meanwhile, energy and mining activity continues at a robust pace. In agriculture, most district farmers expect a bin-busting harvest, but crop prices remain low. A drought and fires have hurt most Montana farmers and ranchers.
Labor markets are still tight as businesses struggle to attract and retain workers.
Some price increases are noted, primarily in housing, natural gas, electricity and paper. Construction and Real Estate Commercial construction continues to grow but at a slightly slower rate. Building contracts awarded in the Dakotas and Minnesota increased 2 percent for the three-month period ending in July compared with last year. A commercial real estate firm predicts that downtown St. Paul will reach 10 percent to 12 percent vacancy rates during the first quarter of 2001, and some rental rates have dropped due to oversupply. In contrast, building activity in Eau Claire, Wis., is at a record pace.