The Boston Globe from Boston, Massachusetts • 53

THE BOSTON GLOBE THURSDAY. JULY 24, 1986 53 Consumer prices climb 0.5 in June Inflation stays at its lowest level in 31 years Consumer Price Index Seasonally adjusted The Consumer Price Index is a monthly gauge of about 400 goods and services that compares current prices to those of a selected base year. The June CPI, which finished the month at 327.9 after seasonal adjustment, is equivalent to a cost of $327.90 for the government's sample 'market basket1 that cost $100 in 1967. The main components of the index are housing, food and beverages, and medical care. By Vivian Marino Associated Press WASHINGTON Consumer prices soared 0.5 percent last month the biggest increase of the year -but the inflation rate still remained at its lowest level in 31 years, the government reported yesterday.

Also in June, the government said, consumer spending rose significantly while personal income inched up slightly and personal savings declined. Factory orders for big-ticket durable goods improved, another report said. Last month's' increase in the Labor Department's Consumer Price Index followed a 0.2 percent rise in May. It was the largest monthly increase since a 0.6 percent jump last November. Higher energy, housing and food costs accounled for most of said durable goods orders totaled $104.8 billion last month, $2.2 billion higher than In May.

Orders had fallen from a high of $108.2 billion in January as US manufacturers continueJ to suffer under the country's soaring trade deficit. Private analysts said the June advance was encouraging, but that it would take further improvement before they would be willing to say American manufacturing has seen the worst of its trade problems. Of particular Interest, analysts said, was a 2.3 percent rise in orders for non-defense capital goods, the first increase in this series in three months. These orders for equipment needed to expand and modernize production facilities have been tumbling as businesses slashed investment plans In the face of weak demand. Before adjusting for inflation, average weekly earnings were $305.20 in June compared to $300.61 a year ago while the pay per hour rose to $8.72 from $8.54 a year ago.

Another economic report by the Commerce Department said factory orders for big ticket durable goods rose 2.1 percent in June, the first Increase In four months and the biggest advance since December. Commerce Secretary Malcolm Baldrige called the Increase "a welcome rebound," particularly in light of Tuesday's report that the gross national product from April to June grew at an annual rate of only 1.1 percent. The Commerce Department if1 Cars jam the parking lot at the pers rest in the atrium, right something cash-and-carry, we can't expect retailers to enforce the tax. It would be too cumbersome. Where the Individual Is concerned, we will not be Involved In a border war, slopping cars and such." Durning said, explaining that for those who want to pay the tax.

a form Is available from the department. Slephen Saxe, manager of the new mall, said Pheasant Lane, which was named for a street plowed under to accomcxlatc the mall, anticipates 30,000 to 40,000 customers a day for the next two "celebration" weeks. He expects the mall's primary market to be those who live within a 25-mllc radius, meaning 60 percent of its vices cost more in June, consumer spending in the same period rose by 0.6 percent, according to a report by the Commerce Department. Americans' average weekly earnings, after discounting for inflation, fell 0.3 percent in June, the third decline this year. The Labor Department said a 0.2 percent advance in hourly earnings was not enough to offset a 0.5 percent rise in Inflation.

The average number of hours worked in June was unchanged from the May figure. The decline in earnings followed a 0.1 percent drop In May and left American workers' pay checks, after adjusting for inflation, just 0.2 percent higher than a year ago. rinw It' -4 study shows the state stands to lose $22 million In sales tax revenue this year from citizens who travel to New Hampshire to shop. If sales predictions by the Pheasant Lane Mall managers are corrrect, it could add losses of another $2 million annually. A Massachusetts 5 percent "user tax" for Items bought out-of-state Is little enforced for Individuals, although the state collects from retailers who deliver goods within Massachusetts.

"We're up there wll vigorous enforcement of those who deliver Hems." said Department of Revenue spokesman Harry Durnlng, adding that the chief tenants at Pheasant Lane have records as "good corporate citizens" who pay the tax they owe. "But if Individuals go buy X', New Hampshire mall counts on Massachusetts shoppers the June gain which would be equivalent to a 5.7 percent annual Inflation rate if maintained for 12 months. But economists maintained that while inflation will rise, it won't, be as bad as the June figures appear. Some have predicted inflation soon would return to the 3.5-to-4 percent range that existed before the collapse of world oil prices, suggesting an average for the year of near 2 percent. Prices at the retail level have declined at an annual seasonally adjusted rale of 0.2 percent for the first half of 1986 the lowest six-month rate of inflation since a 0.4 percent fall from January-June 1955.

While merchandise and ser jnwil'iiwwi Mays will head for the north when they want to go on a shopping spree. It was a promising start, yesterday, with thousands of would-be shoppers crowding the ribbon-cut ting-wlth-brass-band ceremony at the mall's opening. Pheasant Lane positioned Itself on the Massachusetts border to lure savings-minded shoppers like the Mays from the Bay State to New Hampshire, which has no sales tax. Retailers at the mall, which Is anchored by J.C. Penney, Sears, Jordan Marsh and Ixcli-mcre, have made no secret of their hope of attracting customers thanks to the tax break.

J.C. Penney went so far as to eliminate a four-f(H)t cornerstone that would have been In Massachusetts, while the rest of the mall is in New Hampshire. A Massachusetts legislative eight remaining company-owned stores, Including I tie one based on Massachusetts Avenue In Itoslon, and will concentrate on lis prepackaged Ice cream sold In supermarkets. The stores will continue as Sieve's Iranchlses. The first store was opened in Somervllle In 1973 by Sieve llcrrcll.

Its trademarks were Ice cream made on I he premises, Instead of a cent nil local Inns, wllh loppings of everything from Ms to Hcrshcy Bars, llcrrcll sold out lor In 1977 to Joey and Nino Crug nale, who owned an Ice cream slore down the slreel called Joey's. The Crunaglcs expand ed ihe business, opening two more company owned slores and Hi franchises. In 19H3. Ihcy sold the company In Inlr-graled Resources, a diversified New York company. In January of this year, tin Invest menl group headed by Richard li.

Smith, Ihe loiindcr of Krusen (iliidle l.ld.. bought Ihe nssels of Sieve's Irmn who sold Krusen (iladje In Dart and Kmll Inc. last year, formed Sieve's Homemade ft Cream Inc. 1967100 330 310 -3 U.o Boston figures reported bimonthly. Source: Bureau ot Labor Statistics Globe chart Chrysler, GM say profits off Reuters I DETROIT General Motors and Chrysler yesterday reported sharply lower earnings due to lower output and higher marketing costs.

GM said Its second-quarter profits fell 15.6 percent from a year ago, to $978 million, while Chrysler said its earnings In the period declined 18 percent to $488 million. The declines were expected because both companies built fewer cars and trucks In the last three months than they did a year earlier. Chrysler also paid taxes at a higher rate than last year. But Wall Street financial analysts said GM's performance was weaker than projected because of manufacturing costs that are the highest In the American Industry, heavy spending on new projects, and higher marketing Chrysler's profits, they said, were better than forecast because of its position as the lowest-cost producer among the Detroit Big Three. In the year-ago quarter, Chrysler's profits totaled $596 million.

The company also reported a one-time gain of $131 million from selling Its shares In the French carmaker Peugeot. Chrysler chairman Lee lacocca told reporters that he regarded the profits of the No. 3 carmaker as "particularly Impressive, given the heavy Investment we have been making In our products and plants." GM, the world's biggest automaker, said Its profits declined from $1.16 billion a year ago, despite a 10 percent Increase In lis global revenues to $27.6 billion from $25.1 billion last year. Railroad offer's workers 15 of ownership By Bruce D. Butterfleld Globe Staff Guilford Transportation Indus tries In what It described as a dramatic move to settle its bitter labor troubles, last night notified the National Mediation Board that It was willing to turn over 15 per cent ownership of Its three rail roads to workers In return lor union concessions.

"It's a short-term offer. We're only leaving It on the table until noon on Saturday, said Colin Pease, vice president of Guilford three railroads. Union spokesmen could nol be readied for comment last night. Under the company olfer, Pease said, Guilford will establish stock ownership plan, com prised of 15 percent equity of the Guilford Railroad Division. He said nil employees working ns of March 3, prior to Ihe strike of Ihe Brotherhood of Maintenance of Way (employees, would be Includ ed In the plan.

He said Guilford was also ofler- Ing the maintenance way workers an across he-board pay Increase that would them to $14 an hour. "The cost Is productive work rules," said Pease. He did not detail what changes he was demanding, The Guilford railroads nre the Ilnslon Maine, the Maine Central and the Delaware ft Hudson. The labor dispute renters on Ihe small, 100 member maintenance of way union in Maine, whose strike curlier this year spfnd throughout llic Northeast, Boston 314 By Klrsten O. Lundlicrg Contributing Reporter NASHUA -Three generations of Mays family women from Chelmsford, hung over the atrium balcony at the grand opening yesterday of the Pheasant Lane Mall on the Massachusetts-New Hampshire border.

"We've been waiting for this to open for a long time. We think it's going to be a terrific place to come shop." said Judy Mays, who with her 16-year-old daughter Wendy and her mother, Joan Curran, was trying to get a better view of the gaily decorated speakers' platform below. The managers of the four department stores and 150 specially retail outlets that fill the 1 mllllon-square-foot mall hope that more Massachusetts citizens like the Data General loses $2 million Sluggish economy and depressed capital sending blamed Public stock offering Steve's latest treat Globe staff photosGeorge Rlzcr Pheasant Lane Mall, left, and. shop customers are likely to come from Massachusetts. But the New Hampshire clien tele can be counted on for loyalty.

When Diane Bernard, 17. accept ed her summer Job as a cook helper with the Sheraton Tara Hotel In Nashua, she made sure she could take off July 23 because that was the grand opening for the Pheasant Lane Mall on the Massachusetts-New Hampshire border. "I knew the mall was going to open and 1 Just had to be here," laughed the. Nashua teenager, who lives up the street from the new mall. Her 15-year-old friends Heidi Rlcssland and Yvonne Cook, giggling beside her, had done the same.

of stronger demand when It re a 'Financially, they are In a superb position. They have a lot of cash. You'll see significant mar-din improvement as soon as they can add to the top George D. Elllnfi. analyst have a lot of rnsh.

You'll sec significant margin Improvement ns soon as they can add to the top line." "The problems seem to have stabilized," said Stephen Dube, an analyst at Shearson 1-chman. "The worst seems to be past them. They are shipping their newer products In more sizable quantities." Dala General continues lo Increase lis field sales and systems engineering staff to stimulate sales, president Kdson D. dc Castro said In a statement. He said that Dala General's latest products, Its top-of-the-llne MV20.000 and Its moderately-priced "are outperforming our own Intlal projee-lloiis.

ns well as the newest products from romprtl-tors." Data General said It also has restructured Its marketing group to Increase Its focus on specific Industries, formed a new Communications Systems Group for networking and data rominunleallons systems and strengthened research and development staffing. De Cnslro said these moves, along wllh the layoffs, "enhance our ability to Improve market share during this weak Industry demand period and to By Douglas M. Bailey (Jlolw Staff For about the price of three quarts of Steve's Ice Cream, yon can now own a pkrc of the company ilself. Stock In the popular Ice cream company, which was founded 13 years ago In Somer- vllle. went on sale for the first lime this week.

So far. Sieve's slock Is performing like Ms Ice cream, giving pleasure to I hose who buy II. Units of Sieve's Homemade Ice Cream were first offered to the public Monday til each. At Hie end of trading yesterday they were selling for $13 each. Kiich unll consists of lour shares of common Mock und one wnrrant lo purchase an olher share ot $2.50 xt share.

The company ollcred mills find raised an csllmaled $4,5 million In I he oiler I ng. According lo the company's prn.NKTtus. Sieve's, which Is now bawd In New Jersey, sells lis Ice cream In 30 slates In-chiding Hawaii. Sales for the ffrsl three months of Ihls year I ola led $1.1 million. The company says lis Jnlends lo sell lis By Jane Meredith Adams C-'lobc Staff Saying thai a sluggish economy and depressed capital spending continue to hurt results, Data General Corp.

of Wcstlxiroiigh yesterday reported a net loss of $2 million, or cents a share, for the third quarter ended June 2H. Revenues for the quarter were up 14 XTcent to $325.3 million The loss compares to a net loss of $8.3 million or 32 cents a share for the same period last year. Revenues for the prior year's third quarter were million. The profit from oxrallons In the quarter was Including an $11.0 million charge for rx-x'iises related to the layoff of 900 workers last monlh, 250 of whom worked In Massachusetts laclll-lies, and the consolidation of two manufacturing organizations Inlo olher company plants. The loss from ox-rallous In last year's Ihlrd fiscal quarter was million, which Included an $8.2 million Inventory writedown and a $6.3 million provision ussoclaled wllh a work force reduction.

Dala Onicral rinsed yesterday at 33. up on the New York Stcx Kxehange. The company said yesterday that II did not cxix-ct further liiyofls." "I think we're done ns far ns that goes," wild Kenneth IXmoglme, a stxikcsman. Of a pickup In the level of capital spending. Don-oghue said.

"We have ni expectations. We Just don't see any evidence of Improvement." "I don't think I hey're in any Irnuble." said George I), Klljng. nn fit Oppenhrlnier Ihry arc in a superb poslllon'iTliey lake advantage turns.".