Challenges cited by the respondents include implementing new technologies and complying with government regulations. Most respondents see their communities' economy expanding in 1997 Although most respondents are upbeat about economic growth in their state, others are less so. Montana and South Dakota, two of the district's fastest growing states in the early 1990s, lag the rest of the region when respondents were queried about changes in particular aspects of their local economies between 1996 and 1997. Respondents' views on consumer spending and housing starts suggest moderate growth. Thirty-nine percent see housing starts increasing vs. 19 percent who anticipate a decline.
Respondents are most optimistic about business investment spending.
These responses suggest that district nonresidential construction should remain quite strong. The Minneapolis Fed's regional forecasting models, though, project modest employment growth in 1997, so respondents may be overly optimistic about their communities' employment prospects. While the expected increase in employment is open to speculation, problems in hiring workers are not. The district's unemployment rate is expected to average 3.8 percent in 1997, well below the 5.3 percent rate forecast for the nation. Seventy-four percent of respondents indicate that securing workers will be a challenge in 1997.