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

DATE: THURSDAY, December 8, 1994                   TAG: 9412220011
SECTION: BUSINESS                    PAGE: B10   EDITION: METRO 
SOURCE: STAFF REPORT
DATELINE:                                 LENGTH: Short

MODERATE GROWTH IN REGION

The Federal Reserve said Wednesday its Fifth District is experiencing moderate growth, especially in the service-producing sector, commercial real estate, port activity and state revenues.

The district, which includes Virginia, West Virginia, the Carolinas, Maryland and the District of Columbia, said consumer spending also rose based on strong holiday sales.

Retailers "reported increased activity in November, and they expected sales during the upcoming holiday season to exceed last year's robust level," the Federal Reserve Bank of Richmond added to the Fed's Beige Book report.

"November retail sales increased because of weekend promotions.''

The service-producing sector reported increased activity, although revenues fell for companies providing services to other businesses.

There was little change in indicators monitoring manufacturing, and tourism experienced its usual November slowdown, the report said.

Financial institutions polled for the survey "reported that loan demand slowed during late October and the first three weeks of November," the Fed said.

"Consumer loan demand fell sharply, while commercial and mortgage loan demand declined slightly.

While home sales fell, commercial real estate activity increased and speculative construction increased in some areas.

State governments forecast moderate increases in tax collections.

by CNB