Regional Economic Digest
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Economic Update By Jason Henderson The Tenth District economy continued to expand at a healthy pace in the third quarter of 1997. Manufacturing activity expanded at a faster pace in the third quarter, and the farm economy continued to improve. Energy posted more modest gains in the quarter, and construction activity declined seasonally. The unemployment rate continued to trend lower as employment levels advanced moderately. Back to top Regional Economic Digest home Survey of
Tenth District Manufacturers Manufacturing activity in the Kansas City Federal Reserve District expanded in October at a healthy rate, 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 moderate growth in October, at a higher rate than in July. Inventories of raw materials and finished goods edged up at district factories. Prices received for finished goods held steady, while prices of raw materials increased slightly. Overall, manufacturing remained stronger than a year ago, and manufacturers were optimistic about the outlook for the next six months. Back to top Regional Economic Digest home Survey of
Agricultural Credit Conditions Agricultural credit conditions continued to improve in the third quarter of 1997, according to a survey of 337 agricultural bankers. Continued improvement in the cattle sector combined with increased crop production to lift farmland values. Demand for operating loans at district banks remained strong, while repayment rates improved and interest rates edged down. Overall, district agricultural bankers expect 1997 farm incomes to edge up due to continued recovery in the livestock sector. Back to top Regional Economic Digest home Solid Performance
at Tenth District Banks Commercial banks in Tenth District states performed well in the first half of 1997. Profitability and loan quality remained high, while loans continued to grow at a healthy pace. The only negative was that deposits grew sluggishly, adding to liquidity pressures. Banks in district states slightly outperformed banks nationwide in profitability and loan quality, while matching them in loan growth and deposit growth. Back to top Regional Economic Digest home Economic Indicators |