THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Thursday, August 4, 1994 TAG: 9408040582
SECTION: BUSINESS PAGE: D3 EDITION: FINAL
SOURCE: ASSOCIATED PRESS
DATELINE: WASHINGTON LENGTH: Short : 45 lines
The government's main forecasting gauge of economic activity rose moderately in June, while orders to U.S. factories advanced solidly for the fourth straight month.
Meanwhile, the Federal Reserve, in its latest survey of business activity, said Wednesday that there are scattered signs of a slowdown but also possible indications of rising prices.
Analysts said the economy has entered a period of modest expansion marked by slower consumer spending, but with manufacturing continuing to grow at a healthy pace. It is not clear how likely the Fed is to raise interest rates again soon, they said.
The reports:
The Index of Leading Economic Indicators climbed 0.2 percent in June to an all-time high of 101.5, the Commerce Department said. While the rise was modest, it slightly exceeded the expectations of economists. The index has now risen in 10 of the last 11 months.
Also, the index rose a revised 0.1 percent in May after remaining unchanged in April.
Orders to U.S. factories rose 0.8 percent in June, matching the May increase, Commerce said. Except for declines in construction-related materials and home furnishings, the increase was broad-based and was led by a 12.8 percent surge in orders for medical instruments and navigation equipment.
The Federal Reserve said its latest survey of economic conditions compiled from its 12 regional banks showed the economy was continuing to expand but that a number of the banks had reported ``scattered indications of some slowing or slight declines.''
But the Fed said it has detected some inflationary pressures, particularly in commodity prices and higher energy costs as Americans turn on air conditioners because of the summer heat.
KEYWORDS: ECONOMY
by CNB