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

DATE: THURSDAY, May 11, 1995                   TAG: 9505110090
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

FIFTH DISTRICT HAS LOTS OF ACTION IN TOURISM, PORTS, JOB AGENCIES

Economic activity in the Federal Reserve Bank's Fifth District, which includes Virginia, showed a slight gain in March and April.

Activity was up in tourism, ports, temporary employment agencies, commercial real estate and, especially in Virginia, state revenues. The business sectors exhibiting little or no growth included services, finance and residential real estate, the bank said.

Consumer spending and manufacturing activity saw declines, while conditions in agriculture were somewhat worse than a year ago because of extended dry weather.

Temporary employment agencies indicated that labor markets were tight throughout the district, with demand for temporary workers on the increase, along with their wage levels. The agencies said there were more jobs than people, with employers in a bidding war for workers.

Demand for workers was strongest from manufacturers, warehouse operators and distributors. The bank said companies were seeking "anyone with computer skills."

Indicators of retail activity generally decreased in April from their March levels, according to preliminary results from a mail survey of retailers in the district. Sales, wages and inventories decreased. Employment and big-ticket sales increased, however, and shopper traffic was unchanged.

Survey respondents indicated that retail prices rose 1.1 percent in April. They foresaw decreased demand for their wares and an increase of 2 percent in their prices during the next six months.

Service-sector companies who responded to the survey said employment was lower, even though activity changed little in April, while prices rose 0.6 percent. The companies said they expect a slight decrease in demand for their services and a 1 percent increase in prices during the coming six months.

Most indicators measuring factory activity declined in April from March levels. Shipments, new orders and employment declined, and the backlog and work-week indexes changed little.

Manufacturers, however, were more optimistic about the next six months. They said they expected shipments, the work-week and capital expenditures to increase.

Prices for finished goods rose at the same rate in April as in March, and at a rate slightly below the general inflation rate. The cost of raw materials, on the other hand, rose less in April than in March and faster than the overall inflation rate.