Oil development is pumping cash into parts of three states, while mining and forest product output is generally steady. Manufacturers report generally good business with normal inventories and no price pressures other than in fuels. Severe weather is causing problems for cattle ranchers, and hog slaughter has dropped slightly compared to a year ago. Consumer spending apparently is guarded, with holiday retail sales only slightly above 1995 levels and cold weather reportedly slowing car sales. Tourism sector reports are mixed, but with some improvement in regions that had been slow.
Labor markets remain very tight.
Many employers report difficulty in securing needed workers, but few have given or anticipate large pay increases. Prices, other than for petroleum products, show little increase. Generally strong fiscal positions for most district state governments point toward increased public-sector construction in 1997, according to one industry official. Realtors report good business for the season, after some slowness in mid-1996. Natural Resource Industries Oil and gas continue as the natural resource sector's strongest component.