NEW YORK – Gradual improvement is expected for the local economy next year, according to the Federal Reserve Bank of Minneapolis’s annual forecast, released today, but not all parts of the economy are expected to show strength, and downside risks linger.
Agriculture will rebound well, and consumer spending will also aid in the economic recovery, while construction and labor markets are expected to be drags on expansion.
"It appears the national and Ninth District economies have emerged from the recession and a slow recovery is under way," said Toby Madden, regional economist at the Minneapolis Fed, in a statement. Following a year of decline, manufacturing activity started to pick up in the district during the last half of 2009. New orders and production are seen growing next year, but employment and capital investment will remain flat.
