Federal Reserve Bank: Louisville economy

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and Evansville, Ind. According to the report, general retaip activity was mixed and car dealers continuesd toreport “mostly negative Nearly 20 percent of generalk retailers and more than 80 perceng of car dealers surveyed for the reportt said that May sales were lower than April sales. Despitwe the performance, two-thirds of generaol retailers and one-third of car dealers expecr sales this summer to increase over2008 levels. Manufacturingb activity continued to decline in May, according to the Manufacturers of metal products, food, paper, auto parts and furniture cut jobs and production duriny the month.
Manufacturers also closed plant s that produceelectrical machinery, aluminum products and auto parts. The service industry outperformed the manufacturing industryin May, accordingy to the report. Expansion was reported in the financial-services and business-supporg services segments. The agriculture and natura l resources sectors also experienced growthin May. Farmeres in Kentucky said they planned to plantt more acres of corn and soybeands but fewer acres of tobacco than they plantedf ayear ago. Farmers in Indiana said they plannexd to plant the same acres of corn and 1 percent fewed acres of soybeans than they planted ayear ago.
Farmerse in both states planted fewer acres of winter wheat last according tothe report. Frequent wet and cool weather delayed planting in both The banking and finance which has struggledfor months, continued to show weaknesz in May. Banks surveyed for the Burgundhy Bookreported “generally weak local banking conditions.” Consume r lending was classified as “unchanged to slightluy decreased,” and there was little change in the mortgage Some contacts reported that mortgagw refinancing activity has slowed from what was experiencedf earlier this year.
Some contacts surveyed for the repory said that lending standards in the Louisville region were tighter in the commercia land industrial, commercial real estatr and consumer-lending categories. Bank deposits varied from “no change to a slighf increase,” according to the report.