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Regional Economic
Digest
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| Regional Economic Update By Deron Ferguson The Tenth District economy resumed its trend of steady growth in the third quarter of 1995 after showing signs of slowing in the previous quarter. Employment grew at a healthy pace and the district's unemployment rate fell. Manufacturing remained steady, construction slowed, and the district's energy and farm sectors improved. Back to top Regional Economic Digest Survey of
Tenth District Manufacturers Manufacturing conditions in the Kansas City Federal Reserve District generally improved in October after weakening earlier in the year, according to a quarterly survey of manufacturers across the district. The survey takes a snapshot of manufacturing activity during the first month of each quarter by asking plant managers about a variety of manufacturing indicators. Most measures of production show a modest expansion in manufacturing activity during October, although manufacturers trimmed inventories slightly. Prices of raw materials continued to increase moderately, but prices of finished goods were stable. Manufacturing activity generally remains stronger than a year ago, and manufacturers are optimistic about the outlook for the next six months. Back to top Regional Economic Digest
Agricultural credit conditions in the Tenth Federal Reserve District improved modestly during the third quarter of 1995, according to a survey of 293 agricultural banks. The improvement was marked by an uptick in farmland values, higher commodity prices, and lower interest rates on farm loans. Still, an expected decline in farm income and continued slow repayments on farm loans signaled underlying weakness in the district farm economy. Back to top Regional Economic Digest Continued
Strength at Tenth District Banks Commercial banks in Tenth District states continued to perform well in the first half of 1994. Profitability remained high, asset quality continued to improve, and loan growth stayed strong. Banks in district states once again outperformed banks in the rest of the nation in profitability and asset quality, and matched banks nationwide in loan growth. Deposits continued to lag behind loans, however, pushing loan-deposit ratios to historically high levels. Back to top Regional Economic Digest
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