Study: St. Louis Federal Reserve reports economic activity expanding
From the St. Louis Business Journal, Wednesday, January 16, 2008 - 4:02 PM CSTThe St. Louis Federal Reserve said Wednesday that economic activity in the Eighth District expanded moderately since its previous survey.
The report, which covers the three-month period from mid-September to mid-December 2007, said the district's services sector continued to grow in most areas while manufacturing activity was mixed. Residential real estate and construction was down, but commercial real estate market conditions remained positive. Retail sales and total loans increased in the district though auto sales remained flat.
The report said more manufacturers plan to open plants and expand operations than those planning to close plants and reduce operations. However, job losses from closings were greater than the announced job gains from expansions. Contacts in the motor vehicle parts manufacturing and furniture manufacturing industries reported plans to lay off workers and decrease operations.
The district's services sector continued to expand in most areas with general and big box retailers reporting sales increases in December 2007 compared with the same month in 2006. Auto sales were flat over the same period.
Home sales and residential construction remained weak, but conditions in commercial real estate markets continued to be strong.
Total loans outstanding at a sample of small and mid-sized district banks increased 0.6 percent in the three-month period from mid-September to mid-December. Real estate lending decreased 0.3 percent; commercial and industrial loans increased 1.4 percent; loans to individuals increased 4.9 percent; and all other loans increased 8.1 percent. Over the same period, total deposits decreased 2.3 percent.
The Federal Reserve Bank of St. Louis serves the Eighth Federal Reserve district, which includes eastern Missouri, southern Illinois, western Kentucky, western Tennessee, southern Indiana, northern Mississippi and all of Arkansas.
