STRICTLY BUSINESS: MISSOURI'S PER-PERSON INCOME STILL GROWING

Missouri's per-person income has grown nearly 50 percent over the past decade, and rose about 4 percent between 1998 and 1999, the latest year data is available.

The Missouri Department of Economic Development said last week that the state's per capita income rose by 3.8 percent from $25,444 in 1998 to $26,404 in 1999. With steady increases every year since 1990, Missouri's per capita income has grown by more than $8,000 or 48.7 percent from 1990 to 1999.

St. Louis County has the highest per capita income in Missouri at $38,886, and Platte County, on the west side of the state, was second at $32,753. Cape Girardeau County was 10th on the list at $24,886. Eight counties in Missouri and St. Louis city enjoyed per capita incomes of $26,000 or higher. Ripley County, at $14,199, had the lowest per capita income, but 15 counties in Missouri had per capita incomes below $16,000.

Every county in Missouri showed increases of 25 percent or better during the 1990-1999 decade. Sullivan County experienced the largest percent increase in per capita income -- 72.8 percent, or $8,367. Six Missouri counties, including Sullivan, had an increase of 60 percent or higher in per capita income from 1990-1999. St. Louis County had the largest increase in dollars -- $12,708 or 48.5 percent. Cole, Green, and Platte counties all experienced an increase of $10,000 or higher in per capita income during the decade.

Between 1998 and 1999, most counties in Missouri experienced positive growth in per capita income. St. Clair County was the only county in the state with no change in per capita income between 1998-1999.

Labor market easing, still some worker shortages

Despite overall easing in labor market conditions, nationally and regionally, there are worker shortages in a number of fields. And, 96.6 percent of the workforce in Cape Girardeau County have jobs. The local workforce totals 37,736, with 36,468 jobs, leaving 1,268 without employment.

The employment rate is even higher in Perry County, where 10,711 jobs are occupied. Perry County reports a workforce of 11,017, leaving 306 jobless.

Nationally, more people are looking for work and hiring is considered easier, according to the latest edition of the Federal Reserve's "Beige Book." The shortage appears to be in light industrial workers, information technology workers and nurses.

The economy, particularly the manufacturing sector, continues to show signs of sluggish growth in the Federal Reserve's 8th District, which includes the St. Louis and Southeast Missouri area, according to the Beige Book.

The Beige Book is a compilation of information collected by the Fed's 12 regional banks. 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, which includes the lowering or raising of interest rates.

Many analysts believe the Fed will cut rates for a sixth time this year at the central bank's next meeting June 26-27. Some suggested the rate reduction may be a smaller quarter-point move rather than the half-point cuts the Fed has undertaken starting in early January as it conducted its most aggressive credit easing campaign in nearly two decades in an effort to ward off a recession.

Construction activity has picked up throughout the 8th District, including the Cape Girardeau area, where work is under way on apartment complexes and a new high school. Housing markets are experiencing a seasonal boost, thanks to good mortgage rates, and agriculturally, crops are in good-to-excellent shape, although some army worm damage was reported.

The 8th District Beige Book report highlights economic development in eastern Missouri, all of Arkansas, western Kentucky, western Tennessee, Southern Illinois, southern Indiana and northern Mississippi. Headquartered in St. Louis, the 8th District has branches in Little Rock, Ark., Louisville, Ky., and Memphis, Tenn.

Some manufacturers expand, some downsize

Contacts report that growth in the manufacturing sector has continued to slow, causing profit margins to narrow further. Many industries, such as furniture, recreational boat, aluminum, leather and auto parts manufacturers, continue to downsize and, in some cases, close plants. In northern Mississippi, for example, more than 1,800 jobs have been lost because several plants have closed or moved away. On the other hand, some manufacturing firms have made plans to expand or locate to the 8th district. For example, firms in the high-tech, tobacco and chemicals industries plan to open new plants in Kentucky and Tennessee by next year.

The service sector has also been affected by the recent economic slowdown, but to a lesser extent than manufacturing. One area of concern, for example, is distribution and logistic services. A Memphis contact notes that there has been a slowing in the number of packages and amount of freight being shipped.

Consequently, one of the District's (and nation's) largest package handling companies, FedEx, has announced a hiring freeze and a suspension of employee profit sharing. The trucking industry continues to experience profit losses because of the high price of fuel. These losses have forced many small trucking companies to file for Chapter 11 protection, while larger firms cope by parking portions of their fleets and laying off workers. Contacts have noted that recent earnings reports seem to foretell a possible ongoing decline in profits for the rest of 2001.

Residential real estate sales and median prices have continued to increase across the District over the past six weeks. Contacts in Tennessee, for example, report that the arrival of the spring buying season has brought with it a sellers' market. Homes in the mid-to-high price range ($150,000 and above) have been the fastest sellers. Commercial real estate activity has been more mixed. In parts of west Tennessee, for example, commercial real estate sales have been strong. In the St. Louis region, on the other hand, downsizing at several companies has increased the availability of sublease space, which has thwarted the momentum of commercial real estate sales. Vacancy rates in this area are up for both office and industrial space.

Residential construction, sales continue strong

Residential construction is strong in most parts of the District. April monthly building permits in more than half of the District's metropolitan areas were up, in some cases by 15 percent or more. Year-to-date building permits through April in all but five District metro areas remained below their relatively strong levels of a year earlier. Contacts report that commercial construction is steady in the District. New or expanding jails, libraries, schools and universities are just a few of the projects that are under way.

Senior loan officers at District banks report that credit standards for commercial and industrial loans have recently been tightened somewhat. The same is true for consumer loans and commercial real estate loans. Credit standards for mortgages, however, have remained relatively unchanged.

The planting of corn, rice and cotton progressed rapidly during the first two weeks of May and is now complete.

Soybean planting this year is ahead of last year's pace in most parts of the District, despite on-again/off-again rain and cooler-than-normal temperatures. A contact reports that, although these conditions are slowing crop development and causing a "yellowing" to occur across some corn and soybean fields, they are not expected to cause much of a problem. Overall, the corn, soybean, rice and cotton crops appear to be in good-to-excellent condition in most parts of the District.

Contacts report Army worm damage across the District -- particularly southern Illinois, Indiana and Missouri -- in hayfields, tall grass fields, pastures and some corn, soybean and winter wheat fields. The full extent of the damage to the wheat crop will not be known until the harvest is complete. The pace of the wheat harvest in Mississippi is modestly slower this year than last, with one contact suggesting that yields might be below average because of a wetter-than-normal winter.

From the Street:

* El Chico Restaurant, 202 S. Mt. Auburn, Road has closed. A note on the door informs prospective customers that the restaurant closed recently. El Chico's, a Mexican restaurnt, opened in Cape Girardeau in August of 1991. At that time, the restaurant the second El Chico in Missouri.

* Construction is continuing on the 48-unit apartment complex on the site of old St. Francis hospital, 801 Good Hope St. Three buildings are in various stages of construction, by the Philips Development Corp. of Little Rock, Ark., which owns the property.