Business activity continues to improve in Ninth District
Business activity in the Ninth District is above average and has improved over the past three months, based on a recent poll of 105 business contacts from around the district (see methodology). Improvements were seen across many industry sectors.
Fifty-five percent of responding Ninth District firms reported that current business activity is above average or well above average, while only 6 percent reported that activity is below average. More than half of respondents said that business conditions have improved over the previous three months, while only 14 percent reported slightly worsening conditions, and none reported that conditions have worsened greatly. Respondents in real estate, construction, professional services and financial services were the most positive about current business activity, while manufacturers were much more mixed in their reports.
When those surveyed were asked about retail sales in their community, 40 percent of the responding firms noted that retail spending has been increasing over the past three months. Only 12 percent reported that retail sales have decreased.
Construction also appears to be growing, as almost two-thirds of responding firms said that construction activity in their communities was above average or better, and only 8 percent reported below-average activity. More than three-quarters of respondents also indicated that conditions in the construction sector had improved over the past year, and respondents in the construction industry were even more upbeat.
Recent changes in the value of the dollar had no impact on sales or costs, according to 71 percent of respondents. The remainder was split evenly between those reporting a positive and negative influence on sales, though manufacturers as a whole reported more negative effects, and they expect this drag on sales to continue.
Methodology: On May 11, 2015, the Minneapolis Fed emailed a web-based survey to about 600 Beige Book contacts from around the Ninth District. By May 12, 105 contacts had filled out the survey. The respondents come from a variety of industries (see table).