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

DATE: THURSDAY, December 16, 1993                   TAG: 9312160087
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

MORE SIGNS OF GROWTH . . .

The nation's industries increased production in November for the sixth straight month, leading some analysts to predict economic activity will continue to accelerate into next year.

Although some voiced fear of inflation, others cited various restraints they believed would moderate the pace of price increases.

The Federal Reserve reported Wednesday that industrial production shot up 0.9 percent, the biggest jump since an identical advance in November 1992.

"The growth in recent months has been led by sharp increases in the motor vehicles and parts industry, where the level of production rose 20 percent between August and November," the report said.

"Excluding motor vehicles and parts, industrial production grew 0.5 percent in November, with solid gains in the output of construction supplies and information processing equipment," it added.

The Fed said the growth was accompanied by a jump in the operating rate of industries, to 83 percent from 82.4 percent in October. In the past, a rate above 85 percent often raised price pressures because it resulted in production bottlenecks that prevented output from meeting demand.

The Commerce Department reported Wednesday that business inventories were unchanged in October while sales rose 0.4 percent, the sixth advance in seven months.

That produced a 1.45 inventory-to-sales ratio, meaning it would take just 1.45 months to deplete stockpiles at the October sales pace. It was the lowest ratio since 1982, when current inventory accounting methods were put in force.

In a third report suggesting an improving economy, the American Bankers Association said the percentage of consumers behind on their loan payments fell in the third quarter to the lowest level in nearly a decade.

A seasonally adjusted 1.95 percent of consumer loans were 30 or more days past due at the end of September, down from 2.06 percent three months earlier and 2.46 percent a year ago, the association said. The sixth consecutive quarterly drop pushed the delinquency rate to the lowest level since June 1984.

by CNB