Regional Economic Update
By Chad Wilkerson
The Tenth District economy began to show signs of weakness
in the third quarter of 1998. District manufacturers experienced some difficulties as
world demand for their products declined, and construction activity slowed more than
normal for the third quarter. Activity in the energy and farm sectors continued to suffer
from low commodity prices.
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Survey
of Tenth District Manufacturers
By Ricardo C. Gazel
Manufacturing activity in the Kansas City Federal Reserve
District was flat in October, according to a quarterly survey of manufacturers across the
district. The unchanged activity level followed a small decline in July, suggesting that
manufacturing activity continues to slow down in 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).
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Survey of
Agricultural Credit Conditions
By Michelle Beshear and Russell L. Lamb
Agricultural credit conditions in the Tenth District weakened in the third quarter of
1998, according to a survey of 316 district agricultural bankers. Farmland values
posted modest declines, reflecting a pessimistic outlook for commodity prices and farm
income. The loan-deposit ratio edged up slightly from the previous quarter to an all-time
high. Loan repayment rates continued to slide, and the availability of funds at district
agricultural banks fell slightly. In contrast, farm interest rates edged down and the
demand for farm loans fell.
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First-Half
Performance of Community Banks in Tenth District States
By William R. Keeton and Michelle Holloway
Helped by solid growth in the district economy, community banks in Tenth District states
turned in another strong performance in the first half of 1998. Despite concerns that
financial market turmoil and low commodity prices might eventually take their toll,
community banks in Tenth District states were still showing no ill effects by midyear.
Profitability remained high, loan quality was favorable, and loan growth and deposit
growth were both healthy. Community banks in district states also compared favorably with
their peers in the rest of the nation by all four performance measures.
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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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