Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, September 15, 1994 TAG: 9409150076
SECTION: BUSINESS PAGE: B-7 EDITION: METRO
SOURCE: Knight-Ridder/Tribune
DATELINE: WASHINGTON LENGTH: Medium
``Industrial materials prices edged up further, but businesses say that competitive pressures continue to restrain price increases on finished goods,'' the Fed said in its periodic report that's commonly called the "beige book" because of the color of its cover.
Likewise, wage pressures remain ``modest,'' despite tighter labor markets and actual worker shortages in the Chicago, St. Louis and Atlanta districts, the Fed said.
Meanwhile, ``economic activity continued to expand through the summer'' in most districts, the "beige book" said. ``Regions that have been lagging are generally said to be doing better while most of the stronger areas saw growth plateau.''
Although wage pressures remain modest in general, the report noted that, ``Shortages of skilled construction and clerical workers in several districts are putting upward pressure on area wages.''
Manufacturing activity was ``steady to improving'' in most districts, the "beige book" said.
Auto and auto supply production picked up in August and orders for computers, farm and industrial machinery, and building materials were reported to be strong.
However, activity in the aerospace and defense industries remained weak, it said.
Retailers report generally positive sales. Most said they were keeping their prices stable because of ``intense competition.''
Auto demand is said to be strong. But dealers in several districts said limited supplies are restricting their auto sales.
Retailers said they expect a good Christmas sales season this year, with modest increases over last year's levels. Those in some districts said they're adding to their inventories in anticipation of the holiday season.
Single-family home sales slowed in most districts and home prices in a few districts were on the rise, the Fed said. Real estate and mortgage lending was down in most areas.
Banks reported that overall loan demand was steady or up modestly, with business lending showing the most strength. Consumer lending was stronger in the Cleveland, Kansas City, Philadelphia, San Francisco and St. Louis districts, but weaker in the Atlanta, New York and Richmond districts, the Fed said.
The Fed added that the summer tourist season outpaced last year's levels. Casino gambling boosted tourism on Mississippi's Gulf Coast, and the weaker dollar drew foreigners to the San Francisco district this summer.
The Fed "beige book" is released every six weeks, shortly before the policy-making Federal Open Market Committee meets. The next meeting is scheduled for Sept. 27.
by CNB