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Regional
Economic Digest
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Economic Update By Jason Henderson The Tenth District economy continued to expand in the fourth quarter of 1997, although more modestly than in recent quarters. Manufacturing activity expanded slightly, and the farm economy continued to improve. While energy and construction activity declined during the quarter, they remained solidly above year-ago levels. The unemployment rate continued to trend lower as employment levels rose moderately. Back to top Regional Economic Digest home Survey
of Tenth District Manufacturers Manufacturing activity in the Kansas City Federal Reserve District expanded slightly in January, 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, growth in the manufacturing sector slowed from the high rates achieved in October 1997. Much of the slowdown may be the result of seasonal factors. Inventories of finished goods edged up at district factories. Prices received for finished goods edged down, while prices of raw materials increased slightly. Overall, manufacturing remained stronger than a year ago, and manufacturers were more optimistic about the outlook for the next six months than in the last survey. Back to top Regional Economic Digest home Survey
of Agricultural Credit Conditions Agricultural credit conditions in the Tenth District improved modestly in the fourth quarter of 1997, according to a survey of 317 district agricultural bankers. An excellent fall harvest and last year's recovery in cattle prices lifted farmland values. Demand for farm loans remained strong at the end of the year despite slower loan repayment rates. The availability of funds at district agricultural banks increased as the year ended, while farm interest rates edged down and loan-deposit ratios remained high. Back to top Regional Economic Digest home Do
Scenic Amenities Foster Economic Growth In Rural Areas? Rural areas in the Tenth District are experiencing a period of renewed economic growth in the 1990s. After a decade of lackluster performance in the 1980s, rural areas are enjoying stronger employment and income growth. Employment growth in rural areas has averaged almost 2 percent per year from 1990 to 1995,while incomes have risen just less than 1 percent per year (Chart 1). While the district's rural economy has rebounded in the 1990s, only about a third of all rural counties have shared in the recovery. There may be a number of reasons for the uneven recovery, but analysts have noted than many of the high-growth rural counties enjoy high levels of scenic amenities. In addition, research has shown that rural counties near urban areas experience stronger growth than more remote counties. In fact, over three-fourths of the high-growth rural counties in the Tenth District either have high levels of scenic amenities or are near an urban area. The impact of scenic amenities on economic performance has been discussed for years, but to date no formal study has been conducted. This article examines the recent economic performance of scenic rural counties in the Tenth District. The article begins by defining scenic rural counties and then compares economic performance in these counties with other rural counties. The results show that scenic rural counties have experienced higher employment and income growth than other rural areas. Moreover, scenic rural counties near urban areas have enjoyed higher employment and income growth than more remote scenic places. Back to top Regional Economic Digest home Economic Indicators |