Monthly residential construction permits in September were up in only five of the District s 12 metropolitan areas. The three areas that were below last year s levels are all in the southern part of the District. Nonresidential construction is particularly strong in the southern part of the District, especially in northwest Mississippi. Parts of southern Illinois and western Kentucky are also seeing strong commercial construction. Banking and Finance Bankers across the District report continued strength in loan demand, especially on the commercial side.
Credit is described as plentiful by most District contacts.
Bankers in St. Louis and central Kentucky report aggressive competition for business loan customers. Some bankers have noted a softening of consumer loan demand and report being much more cautious in extending consumer credit in response to rising personal bankruptcies and consumer debt loads. November in several parts of the District slowed the pace of activity to a near standstill. Initial reports suggest that yields were generally above average and, in some instances, outstanding for most crops. For example, Arkansas rice farmers expect yields to surpass the all-time high set just two years ago.