 |
Regional Economic Digest
|
| Regional Economic Update By Deron Ferguson The Tenth District economy was moderately strong in the second quarter of 1995 but showed signs of slowing from the previous quarter. Employment fell slightly and the district's unemployment rate edged higher. Manufacturing remained robust, however, and construction activity improved. The district's energy and farm sectors continued to slow. Back to top Regional Economic Digest home
State and local policymakers typically have three targets for their economic development policies: outside businesses, existing businesses, and new start-up businesses. Attracting outside businesses especially large manufacturing plants has long been a popular economic development activity, but increasingly this approach has come under fire. As policymakers reexamine the effectiveness and appropriateness of economic development policy, an understanding of how resources are currently allocated among the three main targets is essential. Back to top Regional Economic Digest home
Agricultural credit conditions in the Tenth Federal Reserve District weakened during the second quarter of 1995, according to a survey of 295 agricultural bankers. Despite strong crop prices and a slight decline in farm interest rates, most financial indicators suggest the district farm economy remained weak during the second quarter. Farmland values stalled, cattle prices stayed low, and repayments on farm loans slumped, all pointing to some erosion in agriculture's financial health. Back to top Regional Economic Digest home Mutual Funds and
Annuities at Tenth District Banks Mutual funds are today's second-largest financial industry in the United States, second only to commercial banks. Since 1990, mutual fund assets have more than doubled to $2.3 trillion. Such rapid growth, coupled with the desire of banks to expand into new financial services, has prompted up to one-fourth of all U.S. commercial banks to begin selling mutual funds and annuities. Some banks have even begun to manage and provide investment advice to their own mutual fund companies. This article shows that many commercial banks in the Tenth District states are following the national trend, with large banks leading the way.
|