
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, December 9, 1993                   TAG: 9312090045
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: By LON WAGNER STAFF WRITER
DATELINE:                                 LENGTH: Medium

GROWING, YES, BUT NOT AS FAST AS OTHER REGIONS

The regional economy continued to receive moderately good marks over the past six weeks, according to a survey released by the Federal Reserve Bank of Richmond.

But the five-state region - Virginia, West Virginia, the Carolinas and Maryland - seems to lack the more noticeable expansion of the national economy, Hollins College economist Mary Houska pointed out.

"I think the story is, things aren't picking up as well as they are nationally," she said. "It's not bad; it's comfortable, but it's not the progress you're seeing in other places."

The report on regional conditions from the Federal Reserve Bank's "Beige Book" showed:

An increase in wages, wholesale and retail prices, but a drop in employment.

Tourist activity, for the second report in a row, showed improvement over last year. Hotels, motels and resorts attributed the increase in bookings to unseasonably good weather and stronger-than-normal convention bookings.

Manufacturers increased shipments, new orders and backlogs. Finished goods increased in price at the rate of inflation and prices manufacturers paid for raw materials increased. That situation, Houska explained, can't continue for long before it begins to take a toll.

"This will put a squeeze on these companies," she said. "I think they feel they are in a competitive situation and are hesitant to raise their prices."

Houska theorized that figures from defense contractors may be weighing down gains made by other industries in the region.

by CNB