Inflation continues to concern most area businessmen, but fears of recession are becoming more widespread. While the region's crop outlook is good, Hurricane Carmen destroyed part of Louisiana's sugar cane crop. Mobile home plants in the District are closing or laying off workers. While new commercial projects and industrial plants continue to be announced, several cutbacks and delays have been reported. Foreign trade in the region appears to be booming.

Florida Directors are pessimistic, largely because of the depressed conditions in housing. In south Florida, it would take about two years to fill up vacant condominiums and housing coming on the market. The slump in housing is now spreading to other sectors of the economy. Directors in Birmingham, Nashville, and New Orleans expressed growing concern over a possible recession. One New Orleans businessman summed up this feeling by stating that although people in this region were more concerned with problems of inflation than recession or depression, there is growing concern that a further wringing out of the economy will cause undue hardship to the small businessman and the average income citizen.

Hurricane Carmen, which hit along the Louisiana coast, destroyed an estimated $100 million-about 20 percent-of the states sugar cane crop. The unharvested rice crop was also damaged. The soybean crop is very good in Louisiana this year. The Florida citrus industry is pleased with its near-bumper crop and reports the fruit is in excellent condition. Georgia's tobacco and corn crops may turn out to be the best in several years. Georgia's peanut crop is also excellent: the harvest should be 10 percent more than last year. Tennessee's crops have generally done much better than nationally; only soybean production appears to be down.

One large Georgia-based mobile home firm, which had four operations in Florida, has filed bankruptcy. Mobile home plants in south Georgia and in Mississippi have been laying off large portions of their labor force, and at least one plant has closed down operations entirely. A Tennessee appliance manufacturer announced a production cutback and layoffs as a result of the decline in residential construction and mobile home sales. A downturn in the retail fabric market has resulted in a general slowdown in Georgia's large textile industry. Heavy layoffs have not as yet been announced, but companies have reduced operations. The workweek has been cut back from six to five days. Buyers are ordering on a short-term basis and in smaller quantities than normal. Orlando, Florida's Martin-Marietta Corporation recently announced a large layoff; it is the second large layoff at the defense plant this year. The only industry which seems to be booming is Alabama's steel fabricating manufacturing. Reports indicate that profits and order backlogs are well above normal. The Lockheed-Georgia Company also received some good news; it has been awarded an additional $150 million order for 48 more Cl3OH transport planes.

Announcements of new commercial and industrial projects continue. The largest is a new chemical plant for the Baton Rouge, Louisiana area, which will employ some 2,000 workers when completed. Once again this month, several previously announced projects have been cut back or postponed. Southern Company, parent company of Georgia Power and Alabama Power, has suspended plans for construction in both states. This will cut Southern's building program in the next three years by $1.7 billion. Florida Power and Gulf Power Company of Florida are also reducing and postponing construction. In New Orleans, the Pan American Life Insurance Company has postponed indefinitely the previously announced $26 million office building-hotel-shopping complex. New and expanded industry projects have been delayed in the Huntsville, Alabama area because of the slowing in the economy.

Rumors about the stability of one of the Alabama savings and loan associations were rampant-so widespread that a public statement was made by the association's chairman, the district attorney, and the president of the Federal Home Loan Bank to reassure public confidence. Even though all deposits were covered by the Federal Savings and Loan Insurance Corporation, people were lined up to withdraw their funds.

Foreign trade in and out of Florida ports has taken a 50 percent jump over last year. The port of New Orleans also handled more ocean-going cargo in July than a year ago. In August, a Liberian freighter left Mobile, Alabama headed for Saudi Arabia loaded with southern pine lumber products. Lumbermen hope this is a start of lumber exports, since the industry has suffered from the decline in residential construction.