Regional Economic Digest
Second Quarter 1997


Regional Economic Update
By Kendall McDaniel

The Tenth District economy grew solidly in the first quarter of 1997. The district's manufacturing and construction sectors improved, while the farm economy and energy activity remained strong. District employment posted healthy gains, causing the unemployment rate to fall.

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Survey of Tenth District Manufacturers
By William R. Keeton

Manufacturing activity in the Kansas City Federal Reserve District continued to improve in April, according to a quarterly survey of manufacturers across the district. The survey takes a snapshot of manufacturing the first month of each quarter by asking plant managers about a variety of manufacturing indicators (Table 1). By most measures, manufacturing showed a modest expansion during April. Inventories of raw materials and finished goods edged up at district factories. Prices received for finished goods generally remained unchanged, while prices of raw materials increased modestly. Overall, manufacturing remained stronger than a year ago, and manufacturers were optimistic about the outlook for the next six months.

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Survey of Agricultural Credit Conditions
By Scott Ryckman and Russell L. Lamb

Agricultural credit conditions in the Tenth Federal Reserve District improved significantly during the first quarter of 1997, according to a survey of 344 agricultural bankers. Rising farmland values, higher cattle prices, and increased plantings all indicated strong market conditions for farm producers. In turn, producers took their confidence to the bank: loan repayment rates improved and loan demand strengthened, both conditions pointing to marked improvement in district farm finances.

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Another Good Year for Tenth District Banks
By William R. Keeton and Anne D. McKibbin

Commercial banks in Tenth District states continued to perform well in 1996. Profitability and loan quality remained high, and loan and deposit growth stayed healthy. Banks in district states once again outperformed banks in the rest of the nation in profitability and loan quality, and roughly matched banks nationwide in loan and deposit growth.   

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Economic Indicators
The actual Economic Indicators tables from this issue of the Regional Economic Digest are not available because data have been revised. Regional Economic Indicators are available and updated monthly by research staff.

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