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

DATE: TUESDAY, April 5, 1994                   TAG: 9404050165
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: Knight-Ridder/Tribune
DATELINE: CHICAGO                                LENGTH: Short

PURCHASING REPORT A BIT MORE MODERATE THAN ANALYSTS EXPECTED

Monday's National Association of Purchasing Management's March report reflected moderating economic growth and inflation, economists said.

The report's overall index, at 56.7 percent, was up slightly from February's 56.6 percent, but below forecasts of 57 percent. Also, the prices-paid component dipped to 64.2 percent from 67 percent.

The figures were ``more moderate than the market had been bracing for,'' said Dan Seto, economist with Nikko Securities International in New York.

However, the overall index still was well above the 50 percent indicative of economic expansion, and the report suggests 4 percent real growth and inflation for the rest of the year, said Brian Wesbury, chief economist with the Chicago investment banking firm of Griffin, Kubik, Stephens and Thompson Inc.

Wesbury was skeptical of slippage in the report's employment component, which fell to 48 percent from 50 percent in February. Thursday's Chicago-area purchasers' report showed a sharp rise in employment to 60 percent from 52 percent.

A recent climb in hours worked and the surge in production evident in Monday's report suggested manufacturing growth still was ``doing very well and continues to expand,'' he said.

Production jumped to 64 percent from February's 58.7 percent.

by CNB