As 1999 begins, the economy of the Ninth District is strong. This is reflected in business leader sentiment, which remains optimistic overall despite a few signs of caution. Construction, which is an economic locomotive with a full head of steam barreling through one record after another, is further evidence of overall optimism. Consumer spending continues very strong, as do most manufacturing operations.
Labor markets remain tight and employment high.
There are few signs, if any, of higher prices. On the negative side, the primary commodity sectors including agriculture, oil, mining and paper continue under financial pressure. A statewide survey of over 400 business executives by a Minneapolis business periodical showed that 40 percent planned to add staff in 1999 and that 70 percent expected difficulty in finding employees. Fortysix percent expected sales and profits to be higher in 1999 than in 1998. Though a Minneapolis Fed district-wide poll of business leaders showed somewhat less optimism than a year earlier, a very positive outlook still predominated.