Regional manufacturing grows, retail drops in summer

The June–August report covers the Federal Reserve Bank’s eighth district, which includes parts of Missouri, Kentucky, Tennessee, Illinois, Indiana and Mississippi and all of Arkansas.

Many manufacturers reported plans in June and July to expand operations, open new facilities or hire additional workers, while fewer firms announced plans to close plants or lay off workers.

Freight transportation and business support services did well, as did the leisure and hospitality sectors. However, motor vehicle, food and primary metal product, health services and air transportation industries reported plans to lay off or temporarily idle workers.

Retail sales for the period were down from a year ago. About half of the region’s retailers saw a decrease while 38 percent saw an increase. Car sales were reported down from the previous year.

Residential construction continued to weaken with a decline in single-family residential permits in most areas. Home sales increased in the southeast area of the district, decreased in Arkansas and remained unchanged in Missouri.

Commercial real estate market conditions were mixed as the second-quarter industrial vacancy rate in St. Louis was unchanged from the first quarter and the city’s office vacancy rate declined. Industrial development in the district remains strong.

Lending activity in the region changed little, particularly in credit standards and demand for commercial and industrial loans.

Demand for residential mortgage loans was unchanged while demand for consumer loans was moderately weaker.

Crop and pasture conditions deteriorated slightly this summer because of dry, hot weather, but yields for most crops are expected to be on par with last year or better.

This story originally appeared in SBJ’s Sept. 11 free e-news Daily Update. Click here to register.[[In-content Ad]]