THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Tuesday, April 4, 1995                 TAG: 9504040433
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: FROM WIRE REPORTS 
                                             LENGTH: Short :   43 lines

REPORTS SHOW NEW EVIDENCE THAT ECONOMY IS SLOWING

Three separate reports Monday showed fresh signs of a slowing U.S. economy.

Americans' personal income rose 0.5 percent in February, the smallest gain in three months, while spending increased more slowly than it has in nearly a year, the U.S. Commerce Department reported.

General Motors Corp. said its U.S. sales in March were down 9.4 percent from a year ago.

The National Association of Purchasing Management said its index of manufacturing growth fell to 51.4 percent in March from 54.5 percent a month earlier. It was the lowest rate of growth since September 1993, when the index measured 50.3 percent.

Many purchasing managers attributed slower growth to the effects of higher interest rates, said Ralph G. Kauffman, chairman of NAPM's business survey committee.

The Federal Reserve Board has raised rates seven times in the last year to slow the economy and check inflation.

NAPM's price index - representing the number of companies paying higher prices for raw materials - reflected lower inflation. The index fell to 79.4 percent in March from 83.4 percent in February.

Most of February's income gain was due to bonus payments to auto workers, the Commerce Department said. Disposable income - income after taxes - climbed 0.5 percent in February after gaining 0.6 percent the previous month.

On the spending side, outlays for big-ticket durable goods such as cars and appliances declined 0.6 percent in February to a seasonally adjusted annual rate of $611.7 billion. Spending on nondurable goods such as food and fuel slipped 0.5 percent to $1.431 trillion. Spending on services rose 0.6 percent to $2.745 trillion.

KEYWORDS: ECONOMY by CNB