Tenth District economic developments

Abstract

The Tenth District economy posted lower employment growth in 1997, marking the first time since 1988 that the district underperformed the nation. District agriculture posted solid gains in 1997, with big harvests and major improvements in the cattle industry. Overall, labor markets remained tight in most of the district, most likely limiting job growth in the region.> Gazel reviews the major economic developments in the district economy in 1997 and examines the outlook for 1998. The district economy is likely to grow moderately this year, nearly matching the 1997 pace. Tight labor markets throughout the district and slower growth at the national level will be major factors behind the slowdown. The region's economic growth in 1998 will be well-balanced. Manufacturing activity is likely to expand at the same pace as 1997, driven by gains in the production of durable goods. The service sector should grow moderately again in 1998, supported by solid performance in business and professional services. Retail and wholesale trade may be slowed by lower job and income growth across the district. Construction activity may weaken in 1998, although housing may improve somewhat. The district farm economy should remain relatively strong in 1998.Federal Reserve District, 10th