Regional Update (January-March 1996)

Index The state of the states Southeastern manufacturing survey Southeastern economic indicators

Cover Story - New President to Guide Atlanta Fed Through Era of Change

Federal Reserve System Serves Three-Tiered Mission

Atlanta Fed to Build New Headquarters

The State of the States
T he following is a brief overview of the major economic events and trends in each southeastern state during the fourth quarter of 1995:

  • The slowdown in payroll employment growth seems to have bottomed out, although the state still lags compared with the region and the nation.
  • While payroll employment growth may have stabilized, job losses are still considerable in the apparel-manufacturing portions of the state. These losses are offset by strength in the northern part of the state, spurred by construction for the auto industry.
  • Florida continues to enjoy payroll employment growth rates above the Southeast and national rates even though this growth has slowed modestly from its 1994 peak.
  • Tourism continues its notable comeback with the growing return of European visitors. This acceleration should continue at least through the Olympics.
  • Georgia is still enjoying strong employment growth, even with a mild downturn in its manufacturing sector.
  • Olympics-related activity continues to push construction ahead but has not yet substantially affected services employment.
  • Louisiana continues its slowdown, which is led by services but affects every sector of the state economy.
  • New Orleans is particularly slow, showing essentially flat employment on a year-over-year basis. Manufacturing has been especially weak.
  • The post-gambling-boom slowdown, which mostly affects services, has bottomed out.
  • Manufacturing remains weak. This weakness is largely the result of a national slow down in housing, which hampers Mississippi's dominant furniture industry.
  • Tennessee continues to enjoy growth rates above the national rate but slightly below that of the southeastern average.
  • The Nashville area is still stronger than the region and the nation.
  • Manufacturing has been weak. While the immigration of auto firms has offset a slowdown in the overall auto industry, other manufacturing industries lack such balancing factors.
Compiled by the regional section of the research department of the Federal Reserve Bank of Atlanta.