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Regional Economic
Digest
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| Regional Economic Update By Deron Ferguson The Tenth District economy grew at a healthy pace in the first quarter of 1996. Employment grew sharply and the district's unemployment rate edged lower. While manufacturing and construction activity strengthened, the district's energy sector slowed and the farm economy weakened. Back to top Regional Economic Digest home Survey of Tenth District Manufacturers Manufacturing conditions in the Kansas City Federal Reserve District improved in April after weakening in January, 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. Led by a rebound in production, all measures of manufacturing show increasing activity in April. Inventories of materials and finished goods edged up at district factories. Price increases for raw materials were slightly less widespread in April than when the survey was last taken in January. Prices of finished goods remained stable. Manufacturing activity generally remained stronger than a year ago, and manufacturers expressed optimism about the outlook for the next six months. Back to top Regional Economic Digest home Survey of Agricultural Credit Conditions Agricultural credit conditions in the Tenth Federal Reserve District weakened during the first quarter of 1996, according to a survey of 348 agricultural bankers. Further gains in farmland values and soaring crop prices remained notable bright spots in the district farm economy. But a severe drought in the district's major wheat-growing region, accumulating losses in the cattle industry, and weak repayments on farm loans pointed to some erosion in the industry's financial health. Back to top Regional Economic Digest home
Commercial banks in Tenth District states continued to perform well in 1995. Profitability and loan quality remained high, loan growth stayed strong, and deposit growth accelerated. Banks in district states once again outperformed banks in the rest of the nation in profitability and loan quality, and approximately matched banks nationwide in loan and deposit growth. Back to top Regional Economic Digest home Economic Indicators |