STRICTLY BUSINESS: 'BEIGE REPORT' INDICATES GOOD GROWTH

Manufacturing continues to expand.

Tight labor markets continue.

The century rollover caused little or no disruption to commercial or production activity and few future disruptions are anticipated outside few problems concerning Y2K-related inventories.

In a nutshell, reports from all 12 Federal Reserve Districts indicates strong economic growth in December and early January.

Growth was described as strong in Philadelphia and Kansas City Districts and moderate in Atlanta and Chicago areas.

Consumer spending growth was rapid during the holiday shopping period and has continued into early 2000.

Retailer sales attained or exceeded expectations for the month of December in all districts except one -- The St. Louis District, where sales increased of four to five percent were considered to be below expectations.

The 8th District (St. Louis) economy prospects continue go grow at a steady pace, despite a slowing in the real estate sector, some ongoing weaknesses in the agriculture sector and manufacturing layoffs in the Southeast Missouri sector.

Manufacturing reported continued growth throughout most of the 8th District, according to "Beige Book," a compilation of anecdotal information collected by the Fed's 12 regional banks. The "Beige Book" is issued eight times a year. Although it is not an in-depth report, the Federal Reserve uses it as one of many tools to help determine the direction of monetary policy.

Despite some closings in the immediate Southeast Missouri area -- Farmington Cape Girardeau, Sikeston, Chaffee and Scott City -- labor is still at a premium.

Missouri unemployment numbers increased slightly in the latest reports from the Missouri Department of Economic Development's workforce division, but not in Cape Girardeau County, where 98 percent of the workforce is employed.

The totals are even more impressive in the county to the north. Perry County employment tops the 98 percent at 98.7.

Bollinger and Scott County numbers show more than 97 percent employment of its workforce.

Missouri's continued strength in all employment sectors is a good indication that we enter the new year, and the new century, with a solid economic foundation, said Joseph L. Driskill, DED director.

The number of employed Missourians total 2.8 million, while the number of persons looking for work increased over the past month about 3,900, to 66,300.

Meanwhile, the "Beige Report" indicates increased demand for automotive parts and appliances in the 8th District, headquartered in St. Louis. The district includes Federal Reserve Bank branches in Little Rock, Ark.; Louisville, Ky.; and Memphis, Tenn. The district includes all of Arkansas, Eastern Missouri, Southern Illinois and Indiana, western Kentucky and Tennessee and northern Mississippi.

Plant expansions are under way throughout the district. Six high-tech firms in the Memphis area, including an Internet service center, distributor of computer supplies, and International Paper Co., which is added 500 workers to its plant.

Despite the strong economy, a number of closing have been reported, including the Southeast Missouri shutdowns which eliminated more than 2,000 jobs.

But tight labor markets continue to stifle some businesses. Unemployment rates throughout the district remain at record lows. Some construction projects area behind scheduled because of high worker turnover and a lack of available skilled workers.

Several retail stores have raised their starting salaries as much as 40 to 50 recent to fill positions.

Although sale of new and existing homes remain relatively high in some areas, it has slowed in most of the district's metropolitan areas, with real estate agents and building citing higher mortgage rates for the slowdown.

The fall harvest of corn, soybeans, rice and cotton was better than expected throughout the district. And although winter wheat planting is down nationally, it is up throughout the 8th district.

Foreign markets for corn and cotton has picked up some recently, but has remained unchanged for soybeans.

Still, reports indicate that this uptick in foreign demand has not been enough to help some farmers meet their loan obligations, and a few farmers have started selling assets to meet their loan payments.

Workforce opportunities will remain strong in Southeast Missouri, says the latest Manpower employment survey. The quarterly poll of local companies reveals that about 40 percent of the firms plan to increase staffs during the April-May-June period, and 47 percent of the companies plan no changes in employment.

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B. Ray Owen is business editor for the Southeast Missourian.