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

DATE: THURSDAY, September 15, 1994                   TAG: 9409150064
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: By MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Short

5TH DISTRICT ACTIVITY SLOW IN JULY, AUGUST

Economic activity in the Federal Reserve Bank's Fifth District grew more slowly in July and early August than it had in June, the nation's central bank reported Wednesday.

The district - Maryland, the Virginias and the Carolinas - saw the manufacturing and services sectors increase at a sluggish pace. Retail sales rose little. Activity in housing was unchanged, and credit demand slackened.

On the other hand, tourism continued to strengthen and commercial real estate activity picked up. Price pressures were modest. In agriculture, crop conditions improved, but producers were concerned about lower farm commodity prices.

Respondents to the bank's mail survey reported that retail activity barely grew in July. Retailers said sales and wages rose slightly, employment and shopper traffic changed little and inventories fell.

Looking ahead to the next six months, retailers said they expect demand for their products to increase and their prices to rise 1 percent compared with 0.3 percent in July.

Service firms indicated that revenues and wages were up slightly. Employment changed little except for increases in the wholesale and health services sectors. They foresee rising demand and a price increase of 0.6 percent in the next six months.

Factory activity grew more slowly in June with smaller increases in shipments, new orders, backlogs and the average workweek.

Employment rose slightly in July, however, and exports were up. Manufacturers predict shipments and exports will increase, but there will be little change in employment.

by CNB