More balanced Southeast economy

THe sot.rTHEAsTS economy

I should expand at or slightlY above the national rate in 1987. Fading construction, along with a re-

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By James A. Pihera Vice President The Citizens and Southern CorP.

boomed in the region as contracts for nonresidential building rose from lofty 1984 heights in six of seven states. Housing Permits reached levels last seen in the early I 970s.

Story at a Glance

Housine starts for 1987 will be in the range of t.S to 1.6 million, and I predict continuation of the recent iemarkable stability in starts of single family units. Prior severe fluctuations were caused by the lack of the "two A's:" availability and affordability of mortgages. Now the availability problem has been eased bv mortsase-backed bonds that tap the natidnal market, bypassing local savings and loans. Lower interest bound in manufacturing and agriculture, will encourage a geographic growth flip-flop within the region.

The economy of the Southeast grew a little faster than the WrA' W nnlisnal economy in 1985. This came about as the service-oriented economies of

Florida and Atlanta grew quite a bit more rapidly than the more manufacturing-oriented remainder of the region (Georgia outside Atlanta, Alabama, MississiPPi, North Carolina, South Carolina, and Tennessee). Construction ln 1987, economic growth in the Southeast should again be close to the national average, possibly a little better. And an even higher

Southeast economy growth slightly above national rate slower growth in Atlanta and Florida construction willwane manufacturing will turn the corner.

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