Report: Manufacturing output up in Minnesota

The Federal Reserve says manufacturing output is up in Minnesota. The so-called Beige Book released by the Fed gives an anecdotal overview of business conditions across the country.

It says the Fed's 9th District, which includes Minnesota and five other states, saw a slight increase in overall economic activity since the last report in October.

Notably, output in Minnesota's hard-hit manufacturing sector is up, and expected to reach more robust levels in 2010. And while commercial real estate is in torpor, the housing market continues to recover.

The report comes a day after another study from Creighton University also pointed to growth in Minnesota's beleaguered manufacturing sector.

Bob Kill, the head of Enterprise Minnesota, which provides consulting services to small and mid-size manufacturers, says companies are seeing brighter days.

"We're clearly hearing more companies either bringing people back to work that might've been laid off, adding the hours, or actually adding new people, to the point where I've even heard complaints over the last few weeks, 'we're having a hard time finding skilled workers," Kill said.

Minnesota's latest economic forecast, released on Wednesday, gives a mixed picture. It projects that job growth will resume in 2010. However, it says overall employment will stay below its pre-recession peak through 2013.