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

DATE: THURSDAY, March 16, 1995                   TAG: 9503160070
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: FROM STAFF AND WIRE REPORTS
DATELINE:                                 LENGTH: Medium

FED'S LATEST REPORT A REAL SOOTHER

The nation's central bank bases its periodic report on surveys of its district banks of the economic conditions around the country.

``Reports from the 12 Federal Reserve districts suggest that the pace of the economic expansion has slowed over the past two months,'' the Fed said, adding, ``There is little evidence that strength in labor markets or increases in commodity prices have spilled over into wages or prices of finished goods.''

Of its Richmond-based Fifth District, the Fed said economic activity changed little in January and February, with little or no growth in residential and commercial real estate or in service-producing industries.

Consumer spending declined in February, although sales of big-ticket items rose slightly. However, retailers said prices rose 0.8 percent in February, and most indicated they expected increased business over the next six weeks.

Manufacturing growth showed little change. Companies said prices of finished goods and raw materials rose faster in February than in January. Manufacturers said they expect smaller industry price increases in the future.

Tourism benefited from ski activity, and hotel and resort operators said they expect better-than-normal business, with moderate price increases, over the next six weeks.

Financial institutions said loan demand picked up, mainly for commercial loans and consumer loans other than mortgages. Agricultural conditions were better than a year ago, with a warmer-than-normal winter meaning higher livestock survival rates

The Fifth Federal Reserve District includes Maryland; North Carolina; South Carolina; Washington, D.C.; Virginia; and most of West Virginia.