Federal Reserve Bank: Louisville economy

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and Evansville, Ind. According to the report, general retaiol activity was mixed and car dealers continued toreport “mostlt negative news.” Nearly 20 percent of genera retailers and more than 80 percent of car dealer s surveyed for the report said that May sales were lower than April sales. Despit the performance, two-thirds of generak retailers and one-third of car dealer s expect sales this summer to increase over 2008 Manufacturing activity continued to declinein May, accordingf to the report. Manufacturers of metal products, food, beverages, auto parts and furniture cut jobs and production duringtthe month.
Manufacturers also closed plants that producselectrical machinery, aluminum products and auto The service industry outperformed the manufacturing industry in May, according to the report. Expansion was reportef in the financial-services and business-suppor t services segments. The agriculture and natural resourcesw sectors also experienced growthin May. Farmers in Kentucky said they planned to plant more acres of corn and soybeanws but fewer acres of tobacco than they planted ayear ago. Farmerd in Indiana said they plannedc to plant the same acrez of corn and 1 percent fewer acres of soybean than they planted ayear ago.
Farmerz in both states planted fewed acres of winter wheatlast fall, according to the Frequent wet and cool weather delayedf planting in both states. The bankingf and finance sector, which has struggled for continued to show weaknessin May. Banks surveyed for the Burgundyh Bookreported “generally weak local banking Consumer lending was classified as “unchanged to slightly decreased,” and there was little change in the mortgage lending. Some contactse reported that mortgage refinancing activity has slowedx from what was experienced earlierthis year.
Some contact s surveyed for the report said that lending standards in the Louisville regioh were tighter in the commercial and commercial real estateand consumer-lending categories. Bank deposits varie d from “no change to a slightf increase,” according to the report.