Printer Friendly

N.C. HOME-BUILDING UP NEARLY 40 PERCENT; FIRST UNION CHIEF FINDS N.C. ECONOMY ENCOURAGING

 N.C. HOME-BUILDING UP NEARLY 40 PERCENT;
 FIRST UNION CHIEF FINDS N.C. ECONOMY ENCOURAGING
 CHARLOTTE, N.C., July 24 /PRNewswire/ Home-building in North Carolina is at the second-highest level it's been in a decade, another positive sign reaffirming the conviction of First Union Chairman Ed Crutchfield that the recession is over here -- and that even the national economy is on the mend.
 "Stepping back from all the conflicting reports, I think it's clear that the national economy has scratched its way out of a deep hole," said Crutchfield, speaking at the N.C. Press Association annual meeting here today. "No longer is there just light at the end of the tunnel. Instead, the tunnel is behind us ... However, some people may not feel much improvement for a while."
 Back in February, Crutchfield told First Union managers it was time to declare the recession over, fearing First Union would miss opportunities for good loans if its officers stayed "hunkered down." Conflicting economic reports since then haven't changed his perspective.
 "Nationally, corporate profits will be up 20 to 25 percent in 1992, the first overall gain in three years," he said. "Better profits mean fewer layoffs, which means less anxiety for consumers."
 He cautioned, however, that economic recovery will be a slow in North Carolina, like the rest of the country. Ongoing structural changes -- such as lower inflation, an aging population, defense spending cutbacks and the gradual dismantling of the savings and loan industry -- are still with us. "They won't prevent growth, but they will restrain it," he said. "We will not have what many would consider 'business as usual' for several years."
 "We should forget about a return to the glory days of yesteryear. The economy choked on too much debt in the '80s. Growth in the '90s will have to come the old-fashioned way. We'll have to earn it -- not borrow it from the future. Recovery will be uneven, reflecting the disparity between the urban and rural areas of our state."
 Throughout the state, single-family housing permits were up nearly 40 percent through May, representing the second-strongest January-to-May period in the last decade. That market is expected to stay healthy for the rest of the year, Crutchfield said. New-car registrations in North Carolina were up 21 percent in June, reaching their highest point in almost two years. Stronger retail sales are fueling increased production by such bedrock Carolinas industries as furniture, textile and apparel. Commercial construction in the state, however, continues to be weak.
 "The most encouraging news about the North Carolina economy is its continued success in attracting new industry," Crutchfield said. "In 1991, our state ranked No. 1 in the nation in new manufacturing plants and No. 3 in new and expanded facilities for all types of companies. To put that in perspective, we attracted nearly twice as many plants as California and also beat Texas in both categories."
 Crutchfield also drew comparisons between banking and the newspaper business. "Banks and newspapers both are mature industries -- perhaps even declining industries," he said. "We can count on only modest growth in our traditional source of income -- loans for bankers and advertising for newspaper publishers. That means we must continue to control costs and develop new sources of revenue.
 He added that the quality of a newspaper and a bank should be defined the same way -- by how well they serve local communities. "As long as newspapers and banks nurture that local connection, our businesses will prosper, even during these uncertain economic times," he said.
 First Union Corporation (NYSE: FTU FTUpr) had $47.7 billion in assets at June 30, 1992, not including pending acquisitions in Georgia and South Carolina. The corporation has 990 banking offices in Florida, North Carolina, South Carolina and Georgia, one banking office in Tennessee and 201 nonbanking offices in 36 states.
 -0- 7/24/92
 /CONTACT: Sandra Deem, First Union Corporation, 704-374-2710/
 (FTU) CO: First Union Corporation ST: North Carolina IN: CST FIN SU: ECO


DF -- CH005 -- 2961 07/24/92 10:30 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 24, 1992
Words:670
Previous Article:CABOT OIL & GAS DECLARES REGULAR DIVIDEND
Next Article:Rx MEDICAL SERVICES CORP. ACQUIRES HIGH DESERT IMAGING FOR $4.0 MILLION
Topics:


Related Articles
ECONOMIC RECOVERY IN TRIANGLE BOOSTED BY JOB GROWTH, HOME-BUILDING
STRONG EMPLOYMENT SPURS HOME-BUILDING, RETAIL AND AUTO SALES IN WESTERN N.C.
TRIANGLE EMPLOYMENT GROWS SLIGHTLY; N.C. ECONOMY STRONGER THAN NATION
ASHEVILLE AREA HOME BUILDING ACTIVITY STRONGEST IN FOUR YEARS; STATE ECONOMY BETTER THAN U.S.
TRIAD ECONOMY OFF TO STRONG START IN 1994; SHORT-TERM RATE HIKES WON'T HURT NATIONAL ECONOMY
ECONOMY GROWS DESPITE HIGHER RATES;
FIRST UNION ECONOMIST SEES SOFT LANDING FOR SOUTHEAST
NORTH CAROLINA'S ECONOMY REBOUNDS IN THIRD QUARTER
TENNESSEE'S ECONOMY SLOWS IN THIRD QUARTER BUT REMAINS STRONG
FIRST UNION REPORTS FAYETTEVILLE SETS RECORD IN COMMERCIAL CONSTRUCTION

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters