The slowing in the Sixth District economy appears to be spreading. Residential construction remains depressed. Layoffs and plant closings are more numerous. Loan delinquencies and business failures are noticeable in many areas. Postponements and cancellations of industrial and commercial projects continue to occur. Directors report that price-cutting by retailers and bargain- or sale-buying by consumers, as well as downgrading of purchases, have now become a common practice. Shortages have eased significantly in many parts of the District. Below is a state-by-state rundown on economic conditions in the Sixth District.

Alabama: As in other states, residential construction is weak but, at least in central Alabama, commercial construction seems to be holding up well. Unemployment is not as severe as nationally (a 4.6 percent rate in September), but layoffs are increasing, particularly in industries related to housing. A pipe manufacturer has laid off 375 workers, while a castings manufacturer has furloughed 600 workers. The lumber industry has been most severely hit; demand for lumber is practically nonexistent, and many industry layoffs have occurred. One lumber dealer has been trying to sell 25 percent below market price and still cannot find a buyer. Several industrial projects have been canceled. Most notable is the possibility that the proposed $2.7-billion uranium enrichment plant near Dothan, Alabama, will not be built for lack of long-term financing. Price cuts in autos and tires were reported, and many items are only moving during sales.

Florida: Jacksonville and South Florida seem to be holding their own so far, but Tampa-St. Petersburg and central Florida have been severely affected by the current economic decline. Tourism is holding up pretty well in South Florida. Delinquency rates are increasing in central Florida and Tampa-St. Petersburg, according to one banker. Many of the delinquencies are from old customers who normally pay their bills promptly. In central Florida, several wholesale appliance dealers and electrical and plumbing contractors have closed their doors, and a few have filed bankruptcy. Among those filing are a major truck rental and leasing firm and one of Florida's oldest and best-known families in the citrus industry. One of the largest cement firms in South Florida has put 50 of its largest trucks in mothballs, and it is laying off a large number of workers. Florida Power Company has furloughed 5 percent of its work force. Mobile home sales are down by as much as 50 percent, and many workers have been laid off. Businessmen report shortages easing in areas related to construction such as timber and cement, but shortages remain in petroleum-base products.

Georgia: This state's economy has sagged, with construction-related industries taking the brunt of the slowdown. Bankruptcies are up 50 percent in Georgia and Greater Atlanta from a year ago. Motels, mobile home companies, bars, and restaurants have been hardest hit. Consumer bankruptcies are up but not as much as for businesses. Textile manufacturing plants are cutting their workweek back to four days. Office space is becoming oversupplied in Atlanta. It is rumored that two partially completed office buildings are stopping construction. A $4.5-million plant, which manufactures door units, was recently completed. The opening has been shelved for eighteen months to two years because of the decline in construction. The coal strike could severely affect Georgia's economy. Georgia Power Company relies on coal for 80 percent of its electrical supply.

Louisiana: Economic conditions in this state are mixed. The agricultural picture is one of a bumper soybean crop and skyrocketing sugar cane prices, which have boosted farm incomes. Cotton yields are below normal, however; and livestock producers are in a severe squeeze as they are everywhere. The timber industry is doing poorly in Louisiana as well as in other southeastern states; timber prices have dropped off 50 percent since February. Several cutbacks of capital spending plans have occurred. One oil company has postponed their previously announced $60-million construction program because of cost escalations which would make the present cost $145 million. One large industry recently decided not to locate in central Louisiana because of a lack of natural gas. Commercial and industrial construction is doing well, however, in other parts of Louisiana. The largest shopping mall in Louisiana, and the tenth largest in the country, is being built in Baton Rouge at an estimated cost of $50 million. Several chemical plants have announced multimillion-dollar expansion plans.

Mississippi: This state, with its large agricultural base, has been least affected by the current economic decline. The state's unemployment rate was 4.1 percent in September, up only slightly from the year-ago 3.7-percent rate. Cotton and soybeans are now being harvested and will be larger than the 1973 crops. This year's pecan crop, also being harvested now, will be off somewhat from last year. Commercial and industrial construction remains healthy. A new shopping center is being built in Jackson. At least two new chemical plants have been announced, and a new paper products plant will be built in the Meridian area.

Tennessee: Reports of price-shading and budget-buying have been received from many parts of the state. Of course, autos are selling at discount prices, but other items also are moving only at sale prices. One Tennessee businessman stated that two years ago he was given a bid price of $85,000 on construction of a new office building. Recently, five bids were received for the same job, and the contractor who bid $85,000 two years ago was awarded the contract at the low bid of $65,000. Tennessee retailers are noticing a significant shift in the downgrading of purchasing by their customers. One businessman notes that the average customer is shopping more and more in the budget sections of the department stores rather than in the regular merchandise lines. Shortages have lessened in most parts of the state, except for fertilizers, antifreeze, and farm machinery. Job layoffs have been increasing. A large bicycle manufacturer is laying off 1,500 workers; a television maker is closing down operations for two weeks. There is fear that the curtailment of natural gas to east Tennessee may force the closing of some plants in that area. Tourism, which is doing well throughout the state, is one of the few bright spots in the state's economy. Instances of capital spending curtailments were reported by Tennessee directors. The development of three major shopping centers has been delayed because of financing costs and other difficulties. A large apparel manufacturer in middle Tennessee has delayed completing a $1.2-million plant after already spending $400,000. A $55-million expansion program announced by a Tennessee engineering company has been delayed because customers are now asking for later delivery of equipment already ordered.