5. EDSR 09-11-2006 - Laserfiche WebLink

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Appendix G: Economic Data (cont.) ~` News RI~~ Date: December 15, 2005 FOR IMMEDIATE RELEASE Media Briefing [PowerPoint Presentation] Contacts: Patti Lorenzen Media Representative 612-204-5261 Patti Lorenzen(camols frb org Tobias Madden Regional Economist 612-204-5372 Toby MaddenCalmols frb ora Minneapolis Fed Forecasts Continued Expansion In The Ninth District Economy For 2006 MINNEAPOLIS, Dec. 15, 2005-The economy in the Ninth Federal Reserve District is expected to continue expanding in 2006, despite concerns about higher energy and materials prices, and a likely slowing in home building and residential real estate. The Ninth District includes Minnesota, North and South Dakota, Montana, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis announced the regional economic outlook for 2006 during a media briefing today at the Minneapolis Fed. This forecast includes information from the Minneapolis Fed's statistical forecasting models, results from the fedgazette's annual business conditions outlook Doll of 345 district business leaders, a survev of 474 district manufacturers conducted by the Minneapolis Fed and the Minnesota Department of Employment and Economic Development, and a survev of 113 district agricultural lenders. Employment The outlook for labor markets in 2006 is positive, reflecting expectations for increased economic growth. The strongest growth is expected in Montana, while the slowest growth is expected in the Upper Peninsula of Michigan. District business leaders indicate that labor markets are tightening. While a majority of respondents to the poll expect to increase employment at their companies, many are beginning to indicate difficulty finding qualified workers. Hiring in the services, manufacturing and construction sectors will expand. In contrast, the agriculture and retail sectors anticipate decreases in employment levels. Unemployment In most district states, unemployment rates will stay about the same in 2006 as in 2005. Rates are anticipated to decrease slightly in Montana from 2005 levels, remain flat in South Dakota, and increase slightly in the other states. Wage growth of 3 percent or below is expected throughout the district. Personal income should post healthy growth in 2006, a positive sign for consumer spending. Prices Increases in energy and materials prices have several business leaders concerned about their souring effect on profits and the overall economy. Poll respondents expect input prices G4