Banking and Finance Loan demand appears to have eased somewhat over the past several months, according to contacts at several mid-sized District banks. Nevertheless, contacts still describe demand as moderately strong. Consumer loan demand appears to have softened the most, although contacts expect some rebound because of the holiday season. Business loan demand has also softened in recent months. Credit quality is still very high, and a number of banks expect record earnings again this year.
Deposits are still hard to come by, and many banks continue to seek other funding sources.
Agriculture and Natural Resources Favorable weather during much of October compressed this fall's harvest schedule in many areas. In the Delta region, however, persistent rainfall continues to disrupt harvest of the cotton crop, with some farmers about two weeks behind schedule. In general, though, there appears to have been only a slight effect on quality. A contact in the cotton industry reports that, with a vibrant U.S. economy, domestic mill consumption is the strongest in several years. Moreover, foreign demand is reported to be very strong.