The Tenth District Economy: Picking Up the Pace

The Tenth District economy improved overall during 1993 thanks to a booming construction sector and healthy growth in services. The district’s gain was uneven, however, because other major sectors of the region’s economy remained mixed. The agricultural and mining sectors were flat, while manufacturing continued to struggle. Economic performance diverged considerably across the seven district states. The New Mexico economy surged due to strong growth in construction and services. Oklahoma, Colorado, and Kansas also recorded strong growth, but Missouri, Wyoming, and Nebraska did not fare as well. Weak manufacturing continued to buffet Missouri, and sluggish trade and service sectors hampered growth in Wyoming and Nebraska. The district economy in 1994 will probably improve slightly as the national economy continues to strengthen. District manufacturing should improve somewhat, but construction may slacken from its recent vigorous pace. The district should not expect to gain additional strength from two of the region’s key industries—agriculture and energy. Overall, the district economy is expected to grow moderately in 1994. This article reviews the district’s economic performance in 1993 and explores the outlook for 1994. The first section compares the overall performance of the district and the nation in 1993. The second section focuses on the recent performance and outlook for the district’s key industries. The third section surveys the divergent growth pattern across district states in 1993 and discusses each state’s outlook for the year ahead.