Banking Loan growth has reportedly slowed in many areas throughout the district. One reported reason is a tightening of credit standards and terms by district banks, reportedly in response to continued increases in nonperforming loans and economic uncertainty in agriculturally dependent areas. Minnesota-based national chains as well as regional and local retailers in cities across the district generally report very good sales for late spring and for the year to date. Mall managers in regional centers also describe brisk traffic. The exception to this positive pattern continues to be retailers in rural towns where agriculture is the primary activity.
Sales reportedly are good across most categories of merchandise.
Recreational goods again are singled out as particularly strong. Two sources describe structural change in auto retailing and predict that the number of dealerships will drop precipitously in the next five years. Sales east of the Missouri River are markedly stronger than in Montana and the western Dakotas. As with general retailing, sales reportedly are particularly slow in rural areas. Tourism officials report a strong spring season and good prospects for summer.