Fed Asks Evansville Bankers and Business Leaders for Observations on Local Economy

According to reports from an Economic Forum sponsored by the Federal Reserve Bank of St. Louis in Evansville, Ind., bankers and business leaders are cautiously optimistic about their local economy. Four to six forums are held throughout the District each year as a way for the Fed to become familiar with its local market.

During the forum, business leaders enumerated signs that the Evansville economy is stable and expanding. In a pre-event survey, more than half of participants said that local business conditions are stronger today than they were a year ago and that profits will increase over the next year. Sixty percent said that, over the next 12 months, local businesses plan to maintain or increase staffing levels, and more than a third said they expect businesses to boost capital spending.

Many attendees said that manufacturing is a major component of the local economy and that there is a need to attract new industries to the region for more diversity. Another positive force in the local economy are the universities, participants reported. Nearly all the business leaders felt the universities were important economic engines for the region. However, they felt it was a struggle to keep new graduates from leaving town. One business leader suggested more internships would help with this problem by attracting students to the Evansville business community.

Other factors affecting the local economy include highway construction and health care. I-69 is widely regarded as a key component to the future economic vitality of the Evansville region. Participants said that it will provide necessary connectivity with the rest of the state and the nation. Others mentioned that affordable health care is a major issue for the region, and said that high percentages of wage increases are going towards health care—the same frustrations they feel are being experienced throughout the rest of the country.

Back to top