Federal Reserve Bank of San Francisco

Economic Research

Western Economic Developments August 1998

Date of Publication: 1998-08-01

1998-08-01

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Executive Summary

  • The Twelfth District economy grew at a strong pace during the first half of 1998, with virtually no slowing between the first and second quarters. However, employment growth so far this year has been slower than last year.
  • Faster growth in California and Washington during the second quarter was offset by slowing in other states, particularly Oregon, Idaho, and Utah.
  • Construction activity remains a key source of growth for the District economy, with substantial employment growth and high levels of activity continuing in both the residential and nonresidential sectors.
  • Reduced exports to East Asia have exerted a moderating influence on District economic growth this year. Associated reductions in employment growth have been concentrated in the durable manufacturing sector.