Ernie Goss Higher Quotations

I expect higher commodity prices and escalating short-term interest rates to push regional growth down significantly in the second half of 2006.

For most states in the region, unemployment rates moved lower and job growth higher as manufacturers, finance firms and energy providers details growth. However, telecommunications remained weak and construction cooled in January.

Manufacturing job losses in the second half of 2005 pushed Arkansas' overall job growth for the fourth quarter to zero. However, Arkansas firms ... benefiting from the opening of the Japanese and other Asian beef markets, and J.B. Hunt Transport, profiting from the U.S. economic expansion, will drive Arkansas job growth higher in the first half of 2006.

The 15 Fed rate hikes and higher energy prices, even with the warmer than expected winter weather, are having negative impacts on confidence among regional supply managers and business leaders.

The Mountain States region experienced growth significantly higher than the rest of the nation. The region added 53,000 jobs, an annual growth rate of 2.9 percent, in the first half of 2005 but added only 41,000 jobs, an annual growth rate of 2.2 percent, in the second half of the year.

It's going to be stronger in the first quarter and in the end of the second quarter. It's going to weaken as higher interest rates set in.

The Mid-America regional economy began 2005 like a lion, but higher interest rates and elevated energy costs forced the region's economy to end the year like a lamb.

Higher interest rates are cutting a bit into confidence, and now oil prices are going back up to post-Katrina levels.

The construction industry and transportation sector in Kansas have pushed 2005 growth into the very strong range. However, higher interest rates will slow growth for both industries in the first half of 2006. The rate at which our Asian trading partners open their borders to U.S. beef will be an important factor affecting growth for the state in 2006.