Report: 2007 closed with modest economic growth

A large number of manufacturers reported plans to expand operations and open plants, but job losses from closings were greater than proposed job gains under the expansions. While the outlook is decent for food, electrical equipment and sanitary paper product manufacturers, motor vehicle and furniture manufacturers say they are hurting, according to the report.

Meanwhile, the services sector expanded in most areas, with the exception of financial services, which expects to lay off workers. Retailers saw sales increases in December compared to 2006, but auto sales were flat.

Home sales continued their slide, as did residential construction, with single-family housing permits dropping in all district metropolitan areas compared to 2006. However, commercial real estate market conditions were more positive at the end of 2007. Commercial construction activity was solid in most areas, although some reported drops in office vacancy rates. Still, there is concern that residential market woes could affect commercial activity this year, according to the report.

Banks reported that outstanding loans grew slightly. Real estate lending fell, but commercial and industrial lenders saw growth, and loans to individuals also increased.

Deposits, meanwhile, fell at many institutions.

In the agricultural sector, ginned cotton bales were down from 2006, red meat production grew somewhat, and coal production increased over the previous year.