Signs of weakness in the Region's economy are becoming more evident. Several major construction projects in the Atlanta area have been temporarily shelved or scaled down. Raw material shortages remain a problem, forcing plant shutdowns and production alterations in some cases. The volume of new industrial and commercial projects appears to be declining, although several new projects were announced. District cattlemen are feeling the pinch of soaring feed grain prices.

Construction on a $40 million luxury high-rise condominium planned for the Atlanta area is being delayed nine months. Officials said that construction start-up will be delayed until interest rates go down and permanent loan money becomes available. Another large Atlanta condominium project has been scaled down to permit a 43 percent reduction in the size of the project. Mid-August was to be the groundbreaking day for a $34 million luxury hotel and office complex in Atlanta, but plans have been shelved for the time being because of the weakening economy. Construction plans on two proposed new office buildings have also been postponed. One construction contractor believes that an overabundance of office space is developing in the Atlanta area. Residential construction remains in the doldrums. A representative of one large building concern indicates that it is currently living on remodeling business. The downturn in residential construction has apparently stimulated a boom in "do-it-yourself" sales. Several businesses specializing in "do-it-yourself" items report soaring sales.

Raw material shortages continue to have an impact on the Region's economy. Aluminum Company of America's Tennessee plant will cease production and marketing of Alcoa Wrap products because of a metal shortage. Two other Tennessee manufacturing plants were shut down because of a lack of raw materials. Some smaller Georgia cities hit by the natural gas drought are turning away new industries; some foresee the possibility of cutting off supplies to existing industries by year-end. The Tennessee Valley Authority's coal supply is getting crucial, and new coal contracts are hard to obtain. Major plants are down to 57-day reserves, compared to the normal 90-day reserves.

Announcements of new industrial and commercial projects have slackened off somewhat. The Orlando-Orange County Industrial Board reports nine new or expanded industries in the first seven months of this year. Two major manufacturing plants will be built in Georgia by out-of-state corporations—a precision ball-bearing plant and a facility to turn out metal-building systems. The huge $2.7 million uranium enrichment plant proposed for Dothan, Alabama, may create the need for another new nuclear-powered electric-generating plant in that area. Multipurpose commercial residential projects have been announced for Jacksonville, Florida, Knoxville, Tennessee, and Atlanta, Georgia.

This year's grain forecast (15 percent less that last year) has sent feed prices soaring and reduced livestock prices, particularly of young feeder calves, for District cattlemen. Two area bankers report that calf prices in Florida and Alabama hit a low of 18 to 20 cents per pound, compared to last year's calf price of 57 cents per pound. There is a general reluctance among District bankers to take on new customers in livestock production. A large Atlanta-based agricultural cooperative has announced that it will close its Valdosta, Georgia, cattle feeder lot. This lot serves the major beef-producing areas of south Georgia and north Florida. High grain prices are cited as the reason for the closing. District crop farmers are in much better shape than cattlemen. Although the national corn crop is forecasted to be down 12 percent from last year, in the District the corn crop is expected to be slightly ahead of last year's crop.