Analysts in the Atlanta Region report that steel, textiles and apparel, and pulp and paper producers have experienced the effects of increased imports and weak export demand because of the strength of the dollar and continued weakness in many Asian economies. The Memphis Region economy continues to underperform that of the nation. Financial institutions report generally favorable conditions, although net interest margins continue to decline, in part because of changes in funding trends. The oil and agriculture industries in the Dallas Region are facing continued stress. A prolonged period of depressed prices or another round of drought conditions would place further stress on agricultural producers, adversely affecting farm banks' loan quality and earnings.
Analysts report that economic and banking conditions in the Chicago Region remain generally healthy.
However, the Region is experiencing some weakness in the manufacturing sector. Also, persistent weakness in the agricultural sector is evidenced by falling repayments, rising past-due levels, and increasing carryover debt. The San Francisco Region's economy continues to outperform that of the nation despite continued weakness in the manufacturing and agricultural sectors. The Region's strong economy during the past several years has stimulated credit demand, forcing some mortgage lenders to rely increasingly on nontraditional funding sources. To subscribe to the Regional Outlook , contact the Center.