Mining Strength is apparent in the mining sector. Mining operations in the Minneapolis district are generally active, particularly the four gold mines which are running at capacity. U. S. copper has become more competitive in world markets, stimulating output in Montana. Increases in rig counts are noted by all districts reporting on petroleum drilling, including Minneapolis, Kansas City, and Dallas. Analysts in Texas, however, believe that drilling activity has nearly completed its shift upward, as long as oil prices stay in their present range.
Agriculture Reports from the agricultural sector are generally quite strong.
Crops and harvest conditions have been good in most parts of the nation, with only the Richmond district reporting weakness. Nationally, livestock farms are generally profitable due to favorable price structures. Both Minneapolis and Kansas City note that farm financial problems have eased somewhat and that ranchers are using recent profits to pay down loans. Tightening Markets Demand is outstripping supply in some markets. There is continued and even increasing mention of tightness in specific labor markets, including reports from Boston, Richmond, Minneapolis, and San Francisco.