Minneapolis Fed Forecasts Slow Recovery in Home Building and Real Estate Markets

December 18, 2008
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The Minneapolis Federal Reserve Bank said the economic downturn will continue in 2009, with unemployment rates rising and recovery in the home building and the real estate markets expected to take more than a year.

The outlook announced Wednesday is for Minnesota, the Dakotas, Montana, northwestern Wisconsin, and Michigan's Upper Peninsula.

Economists with the Minneapolis Fed said unemployment in the eastern part of its region will be worse. For example, Minnesota's unemployment rate could reach 7 percent by the end of 2009.

But in Montana and the Dakotas, the employment outlook is better because of strength in the natural resources and agriculture sectors.

Source: The Daily Reporter

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