Storm Damage Many tornadoes struck Arkansas, leaving much devastation in their wake, and severe rains flooded parts of western Tennessee and northern and western Kentucky, including the Louisville area. Damage estimates and the impact on short-term economic activity are not yet available. Real Estate and Construction Residential real estate markets showed their usual slowing in December. Only two of the District s 12 metropolitan areas had increases in the number of permits issued in December. In many areas, real estate agents report record levels of sales for 1996.
Commercial construction continues to be strong around the District.
One banker noted that applications for commercial real estate loans were up substantially. Banking and Finance Total loans outstanding at six large District banks have declined 1.2 percent since the start of the year, after increasing 0.4 percent over the same period last year. All major categories show declines, with consumer loans dropping the most, 0.8 percent. Commercial and industrial loans have declined 0.2 percent, after rising 2.1 percent during the same period a year ago. Real estate loans have dropped by 0.5 percent, following a 1.2 percent increase a year ago.