Banking Economic Conditions Across The Nation

The nation's strongest labor, credit, and residential real estate conditions remain solidly concentrated in the West, Northeast, areas of the South such as Florida and Virginia, and the Northeast and bank industry performance is also strongest in most of these regions, according to Federal Deposit Insurance Corporation (FDIC) analysts. In contrast, the Midwest continues to lag the rest of the nation in terms of economic performance.

FDIC's State Profiles and a new companion publication, FDIC Regional Profile, respectively, provide quarterly state-by-state and regional snapshots of economic and banking trends. The Fall 2005 edition of FDIC State Profiles and FDIC Regional Profile highlight trends through the second quarter of 2005 and provides an initial assessment of the impact of Hurricanes Katrina and Rita on local economies as well as the state of the housing boom in local markets.

According to the Profile, the strongest economies in the West and South are also characterized by sustained, vigorous residential and commercial real estate activity, reflecting the effects of low long-term interest rates and a proliferation of innovative mortgage products, particularly in areas experiencing the most rapid rates of home price appreciation. However, signs of economic and housing moderation could be emerging, and year-over-year job growth in even the strongest regions leveled off in the second quarter.