Economy Sluggish; Inflation Easing

The economy is sluggish in many parts of the country and inflation pressures are easing, the Federal Reserve reports in its latest survey of regional conditions.

In a mixed picture of economic growth, the Fed said Wednesday that many sections of the nation got off to weak start as the third quarter began July 1. Some areas said business activity remained strong, although even there the pace of increase was usually moderate.

Most regions “continue to report economic expansion, although in some areas the rate of expansion has moderated recently. The upper Midwest, Southeast and West continue to expand. Other areas are experiencing little or no growth,” the survey said. It is based on reports from the Federal Reserve’s 12 regional banks.

The Commerce Department has said growth practically came to a standstill in the second quarter, extending a pattern of dramatically slower growth throughout 1995.

But many analysts believe there already are signs of modest recovery and predict the second half of the year will be improved.