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

DATE: THURSDAY, September 9, 1993                   TAG: 9309090055
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: DANIEL HOWES
DATELINE: THE REGIONAL ECONOMY                                LENGTH: Short

LACK OF STRUGGLE SHOWS IN VIRGINIA'S ECONOMY

Hot, dry weather plaguing the Southeast in July and August devastated crops, boosted tourism spending, slowed shopper traffic at retail outlets and increased manufacturers' production costs, the report said.

Respondents to a survey, conducted every six weeks by the Federal Reserve Bank of Richmond, expressed general optimism that the economy would improve over the next six months.

"Economic growth appears weaker on the East and West coasts while central areas . . . report stronger-than-average growth," the Fed said.

"They were hit so badly by the deep recession of 10 to 12 years ago," said Mary Houska, a Hollins College economist. "We didn't have the trauma that they had. Perhaps if we had had the trauma, we'd have done something more. Virginia has not had to work very hard for its economy."

The way Houska sees it, Virginia is struggling to balance its reliance on federal spending with the need for more robust, more competitive economic players.

"The state has managed to be prosperous in many [regions] without going after economic development. It's almost un-Virginian to go after something aggressively."