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

DATE: THURSDAY, August 4, 1994                   TAG: 9408050040
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: By MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

SURVEY FINDS MODERATE GROWTH IN FED'S MID-ATLANTIC DISTRICT

Manufacturing and retail activity - along with their prices - rose in the district, which includes Virginia, West Virginia, Maryland and the Carolinas.

Port activity and tourism picked up, and commercial real estate activity was strong. Agriculture was at a normal level, according to the Richmond-based bank.

Here are highlights of the Fed's survey, based on questionnaires to companies in the region:

Retail activity increased in June. Sales, wages and shopper traffic rose, but employment, big-ticket sales and inventories changed little. Prices rose 0.3 percent, and respondents expect another jump of 1.3 percent during the next six months, along with increased consumer demand.

Retail sales, especially of autos and building materials, generally were strong, although consumers continued to be price conscious.

Manufacturers reported increases in shipments, new orders, backlogs and hours worked, but factory employment did not rise.

They expect shipments and capital expenditures to increase during the next six months, but no change in employment.

Finished-goods prices were steady. Prices increased for raw materials, but less than the inflation rate. These trends should continue in the coming six months.

Employment also changed little in the service industry except for increases in wholesale and health-service sectors.

Beach and mountain hotels reported increased bookings, with tourism this season expected to be better than last year.

Mortgage originations declined slightly and refinancing remained weak. Consumer lending declined slightly but remained at a strong level overall.

Commercial lending remained weak, and rates were unchanged. Most lenders were cautious about future loan demand, saying they expected slow to moderate levels of activity throughout the summer.

Real estate brokers reported steady traffic but fewer home sales. Fears of future mortgage rate increases resulted in fewer residential building starts. Home prices, lumber costs and construction wages were stable, although the cost of other building materials rose.

In commercial real estate, the month brought strong leasing and declining vacancy rates, creating shortages of space in some areas. The supply of newer office space was particularly tight and the price inched upward, especially in the suburbs.

Financing for speculative construction remained tight, although there was build-to-suit construction in some areas.