High fuel costs continue to bite into some firms' profit margins, particularly at trucking companies. In other sectors, signs of a moderate slowing in the pace of economic activity are still apparent. Home sales and new residential construction are down from their year-earlier levels. Median home prices are also down slightly in most parts of the District. Loan growth at District banks has been marginal, with most strength coming from commercial and industrial loans.
Total deposits continue to fall somewhat.
The hot and dry weather conditions that continued through late summer hurt cotton production and yields. Early reports also indicate that some of the soybean crop was damaged by an early frost in southern parts of the District. Manufacturing and Other Business Activity Sales and employment growth remain steady at District firms, as contacts report moderate demand growth overall. However, with parts of the District reporting some of the lowest unemployment rates in the country, firms in nearly all industries continue to struggle finding workers. Contacts still note that skilled jobs, such as those in the high-tech industry, are particularly hard to fill.