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Show 8 Third quarter loan data shows favorable outlook by James M. Schutz Staff research Director The third quarter of 1977 offers some good news to economists and business- people alike. An analysis of the growth and composition of loans outstanding in Salt Lake City banks (compliments of the Federal Reserve Bank) show's consumer spending growing significantly, and total loans settling down to a smooth pattern of steady growth. This contrasts sharply with the results of the third period of 1976, when loans outstand-standin- g actually fell, and the movements were erratic. This trend of steady growth established during the third quarter of the current year has continued into the beginning of the fourth quarter. The Feds statistics show total loans outstanding for the two latest weeks, loan volume advanced to $1,369 million from $1,346 million registered at the end of August. After netting out a huge swell in federal funds outstanding in the current year, total loans of commercial banks have advanced evenly during the third quarter. Contrast this with the volatile movements of loan totals for the third quarter of 1976 (see graph). During the 1976 third quarter, total loans of Salt Lake commercial banks actually declined over the three months, from almost $1,060 million to under $1,040 million. Extreme volatility As the graph indicates, the third quarter of 1976 was also characterized by extreme volatility, whereas the current years third period show's an even advance over the three months. The current years movements would look more volatile if an unusual swelling of federal funds outstanding (occuring in the week ending July 13) had been added in. However, since the jump lasted only one week, it was not used in the graph in order DO YOU WISH YOU HAD A BETTER SECRETARY? Want to find one fast? We only register truly competent, highly productive applicants. By screening carefully we save you time and frustration. The employer pays the service charge-an- d its worth it! Call Sherry or Mr. Nelson from 9 to 1 SUPER SECRETARIES 555 East 4th South 532-161- 6 picture of total loan growth. At the end of the third period of 1977, total loans outstanding at Salt Lake commercial banks stood 30.9 percent above year ago levels. At the beginning of the third quarter, 1977 was 18.4 percent ahead of 1976. Consumer loans swell The most dramatic relative increase over the three month period came in the consumer loan department. On June 1 of the current year, consumer loans outstanding were 13.9 percent higher than year ago levels. At the end of the quarter, however, consumer loans were 29.7 percent ahead of last year. Over the 1977 third period, consumer debt at Salt Lake City banks increased from $186 million to $214 million, a gain of $28 million or 15 percent. By in 1976, the comparison, consumer loan component gained only $5 million, from $160 million to $165 million in the third quarter, an advance of only 3.1 percent. Supporting this dramatic boost in consumer debt is the significant increase of new' car The latest figures, sales. which arc for the month of July, show 1977 new car sales a whopping 156 percent above July of 1976. Both real estate and commercial loans outstanding at Salt Lake City banks also advanced, but not as dramat- as ically the consumer component. At the beginning of the third period of the current year, real estate loans were 24.8 percent above last At the end of the year. period, Certainly, taxes didnt demand massive movements to the credit market on the part of Utah commercial firms, which is a good sign. lack of dramatic increases in the commercial sector may be an indication that cash flow to the firms is sufficient to cover all additional expansion. 27.4 they stood percent ahead of year ago totals. Commercial loans rose from 21.1 percent above last year to 22.5 percent. Outlook is bright Other significant year to year increases also occurred in the federal funds and loans to other financial institutions. At the end of the current third quarter, both had doubled from year ago levels. Federal funds represent excess reserves banks lend to one another one day at a time. The total picture appears Retailers can look bright. forward to a bright fourth quarter, after experiencing a Real strong third quarter. estate advanced moderately representing a healthy demand for real property. The A new solution Main Street closure set for auto show The Retail Merchants will close Main Street between 1st and 3rd Association South this weekend to sponsor a 1978 automobile show and jazz festival. The association hopes to expose the public to the beautified Main medical bill pile ups When a two week stay in the hospital can cost $4,300, its time to look at an insurance plan that covers the family. And not just any plan. The new MED PAC plan is so comprehensive, you cant afford to be without it. For example, it covers hospital bills, intensive care, maternity, surgery, nursing home, home health care, emergencies and a lot more! Get all the details with no obligation now. Street area, a spokesman for the Foreign and group said. domestic cars will be display- cd by 14 valley dealers and jazz performances given by high school bands. The intersections on Main Street will remain open during the two-da- y to event. RALPH D. GARDNER, C.L.U. 328-887-1 Gardner & Rich Insurance representing Tlio TRAVELERS Insurance Companies SPECIALIZING IN HOSMTAL (GROUP & PERSONAL) BUSINESS PACKAGES LIFE HOMEOWNERS FIRE AUTO JEWELRY Lets say your men make four call-in- s per day. They chew up at least 15 minutes hunting a phone, dialing the call, hustling back to the job. Thats one productive hour. . .$20 wasted per day (hourly rate for driver vehicle.) 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