Regional Update (April-June 1996)

Index The state of the states Southeastern manufacturing survey Views from the region Southeastern economic indicators

Cover Story - Florida and Georgia Find Jackpots With Lotteries

Base Closing Woes Don't Materialize

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 first quarter of 1996:

  • Apparel manufacturing employment continues to decline, leading the state's downward movement in overall manufacturing employment.
  • Construction employment growth is accelerating, led by auto-related developments in the northern part of the state.
  • Tourism is showing considerable signs of health: European visitors are returning to the southern part of the state while Central Florida attractions are expanding their offerings.
  • Jacksonville continues its rapid growth with rapid expansion in business services and manufacturing.
  • Construction, especially infrastructure construction, is growing rapidly. The growth is particularly strong in Atlanta as the Olympics draws near.
  • Manufacturing contracted slightly in the first quarter, after a year of slow but positive growth.
  • The state continues to outperform the nation, even though New Orleans is underperforming the U.S. average.
  • The energy sector is showing signs of health with demand and rental rates increasing notably for drilling rigs and service ships.
  • The business service sector sprang back after a weak period in mid-1995 and now is growing at close to 4 percent, measured year-over-year.
  • Manufacturing continues its contraction, with that sector's payroll employment now shrinking by more than 5 percent, measured year-over-year.
  • Tennessee continues its healthy growth rate, with most of the strength coming from the center of the state.
  • Continued reports of labor shortages, particularly in entry-level positions, persist. In addition, housing availability is becoming an issue around Nashville.
Compiled by the regional section of the research department of the Federal Reserve Bank of Atlanta.