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

DATE: FRIDAY, May 13, 1994                   TAG: 9405130098
SECTION: BUSINESS                    PAGE: A11   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WILLIAMSBURG, VA.                                 LENGTH: Short

BUSINESS LEADERS SEE INFLATION RISING

Economic growth is slowing after a surprising boom in 1993 but moderate expansion should continue throughout 1994 despite higher interest rates, heads of the nation's largest corporations said Thursday.

They also predicted that inflation - while moderate - will move steadily higher before peaking at between 4 percent and 4.5 percent sometime after 1995.

Nearly 100 active and retired chief executives, members of the elite Business Council, gathered for a semiannual conference to compare notes on the economy and rub shoulders with Clinton administration officials .

The analysts said increases in interest rates this year ``had not yet had a noticeable impact on orders or sales'' and consumer demand remains very strong.

A healthy 3 percent growth rate for all of 1994 appears likely even with interest rates on the upswing, the report said.

by CNB