Burgundy Book

Burgundy Book - June 2014

Burgundy Books provide anecdotal economic information and formal data specific to each of the four zones that comprise the Eighth District. These books complement the Beige Book and are released four times per year.

Issue link: http://read.stlouisfed.org/i/367831

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The St. Louis zone of the Federal Reserve comprises central and eastern Missouri and southern Illinois and a total popula on of approximately 5.6 million people, including the almost 3 million who live in the St. Louis MSA. Mixed Bag: Business Optimism, Job Growth, but Higher Unemployment By Kevin L. Kliesen, Business Economist and Research Officer Similar to our February survey, a majority of St. Louis-area business contacts con nue to expect that local economic condi ons in 2014 will be be er than last year. The St. Louis zone's unemployment rate averaged 7.2 percent in the first quarter, a sizable increase from the previous quarter. S ll, the zone con nues to have some of the lowest unemployment rates in the District. Nonfarm payroll employment growth picked up modestly across most of the zone's MSAs. The St. Louis MSA experienced a modest decline in manufacturing employment in the first quarter that more than offset the previous quarter's increase. In Illinois, manufacturing payrolls declined for the second straight quarter despite a brisk increase in manufactured exports. Residen al home prices increased in three of the four MSAs, paced by sizable increases in St. Louis and Columbia. However, single-family building permits were more mixed. Nonresiden al vacancy rates were generally lower in the first quarter than in the previous quarter. Mortgage and credit card balances rose modestly in the first quarter, but s ll remained below last year's levels; mortgage loan delinquen- cies were about half of the na onal average. For the first me in nearly two years, southern Illinois banks regis- tered an increase in profits (return on average assets). Most bankers surveyed expect loan demand and credit standards to remain un- changed over the next three months. A late-March survey of agricultural banks showed that a sizable propor on expect that farm income and capital expenditures by farmers in the second quarter of 2014 will be lower than a year earlier. Burgundy Book A report on economic condi ons in the St. Louis zone Second Quarter 2014 County unemployment rates (SA, Q1-14) Data Snapshot Nonfarm payroll employment by industry This report is published by the Federal Reserve Bank of St. Louis 7.2% 7.2% 7.2% -2 -1 0 1 2 3 4 Informa tion (2%) Other Services (3%) Nat. Res., Mining, and Construction (4%) Financial Activities (7%) Manufacturing (9%) Leisure and Hospitality (10%) Government (13%) Prof. and Business Services (15%) Education and Health (18%) Trade, Trans., and Utilities (19%) Total NonFarm (100%) St. Louis US Percent change from one year ago (Q1-14) less than 5% 5% to 6% 6% to 7% 7% to 8% over 8%

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