Results of our most recent survey of businessmen indicate that business activity in the District remains at a high plateau. Manufacturing activity continues at a high level, although employment and hours worked per week are reported to have declined some in recent weeks. A coal miners' strike growing out of protests over gasoline allocation has idled some 20,000 miners in southern West Virginia. Retail sales in the District apparently remain strong.

Manufacturing activity in the District generally continues at a high level. The diffusion of responses of manufacturers in our survey indicates that shipments, new orders, and backlogs declined slightly in February. Shortages of materials remain a major problem and appear to be especially acute for producers of synthetic fibers. Shortages and stretched-out delivery time for electronic component parts are also adversely affecting production in the electrical equipment and supplies industry. Manufacturing inventories apparently increased slightly during the past month.

In protest to alleged hardships caused by West Virginia's gasoline-rationing plan, an estimated 20,000 to 25,000 coal miners are off the job in the southern part of the state. Even though the original plan, under which no one with more than a quarter tank of gasoline could buy fuel, has been amended to allow those who drive more than 250 work-connected miles per week to make more frequent purchases, the miners remain off the job. At this point, the miners are not expected to return to work this weekend. It is rumored that the strike may spread to northern West Virginia. Scattered incidents of violence on the picket lines have been reported. Reserve supplies of metallurgical coal have been hard hit, and steel production is already being affected adversely.

Employment in the District apparently has changed little since our last survey, with both manufacturing and retail respondents reporting no change. Manufacturing respondents, however, report a substantial decline in hours worked per week. Reports of price increases continue to be widespread. More than 85 percent of the manufacturers reported higher prices paid, and 49 percent reported higher prices received. All of the retailers reported an increase in prices paid, and two thirds reported an increase in prices received.

While retail sales are reported as strong in most parts of the District, some retailers indicate that sales in suburban outlets are being adversely affected by the gasoline situation. Gasoline shortages are also having considerable impact on tourist-related business and on sales of recreational property. Long distance traffic on Interstate 95 is down sharply and, as a result, motel registrations are running far below the year-ago level. Sales of recreational property in the Myrtle Beach area are reported to have slowed considerably, as buyers await further developments in the fuel situation.

Realized gross and net income from farming, in the aggregate and on a per farm basis, hit record levels in 1973 in both the District and the nation. The District s realized gross income per farm jumped 33 percent over a year earlier, but average farm production expenses rocketed upward by an unprecedented 42 percent. Realized net income per farm thus rose only 15 percent as against a 34 percent gain nationally.

Reports from large commercial banks in the District indicate that demand for business, consumer, and real estate loans remains strong. All three loan categories have risen substantially in the last few weeks.

Most survey respondents continue to express pessimism about the economic outlook. More than 50 percent believe that the level of business activity nationally will worsen, while nearly 30 percent believe that local business activity will decline.