Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, January 19, 1995 TAG: 9501190089
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
DATELINE: LENGTH: Medium
Retail sales rose 8 percent to 12 percent over a year earlier. Service firms posted higher sales, except for health-care businesses, which saw revenue drop. Prices for services rose 0.5 percent in December and were predicted to increase 1.3 percent by July.
The report is based on a survey of businesses in Virginia, West Virginia, the Carolinas, Maryland and Washington, D.C., the regions that make up the Federal Reserve's 5th District.
In other bright spots, tobacco prices remained strong and production of hogs and poultry rose despite lower prices.
Above-normal temperatures helped grain producers, who can expect a good-to-excellent crop. But the warmer weather has hampered the region's ski resorts. Resort bookings were up, however, for the rest of winter.
Ports handled more cargo in November than a year earlier, an indication of higher imports and exports.
Financial institutions said loan demand slumped and may fall further due to rising interest rates. Consumers and businesses backed away from borrowing.
Vacancy rates declined for commercial buildings in Virginia and North Carolina. But the demand for space has grown to the point where prime offices was growing scarce in some areas, especially around Washington.
West Virginia was the only state in the district where significant numbers of new stores and offices were being built, the report said.
Home buying, meanwhile, declined in December, despite strong sales of lower-priced homes. The trend was attributed to higher interest rates.
by CNB