Manufacturing sector posts slower-than-expected rise
New York – The nation’s manufacturing sector expanded at a slower rate than expected in June, and construction spending plunged in May, reinforcing the belief of some analysts that increasing sluggishness in the economy will prompt the Federal Reserve to pause at last in its credit-tightening program.
The Institute for Supply Management, a trade group based in Tempe, Ariz., said Monday its manufacturing index registered 53.8 in June, slightly below the 54.4 reading in May. It was the slowest growth reading since the gauge registered 53.5 last August. Analysts had forecast a June index of 55 to 56.
A reading of 50 or more indicates expansion, while below 50 indicates contraction. The June figure represented the 37th consecutive month of growth.
In Washington, meanwhile, the Commerce Department reported that building activity dropped 0.4 percent in May to a seasonally adjusted annual rate of $1.206 trillion, following a 0.2 percent decline in April. It marked the first time in more than three years that construction spending had fallen for two consecutive months. May represented the biggest one-month decline since a 0.7 percent fall in September 2004.
DENVER
Frontier now offers “confirmed” standby
Frontier Airlines has begun selling a “confirmed” standby option for $25. Travelers who want to take an earlier or later flight on the day of their scheduled flight can pay to confirm a standby seat if one is available rather than taking the chance of flying regular standby.
To use Frontier’s confirmed standby, travelers check in at the ticket counter before the new flight. It is similar to other airlines’ confirmed standby options and is subject to restrictions.
Frontier still offers unconfirmed standby at no charge. Confirmed changes to an itinerary on the day before or after a scheduled return flight or one-way flight cost $100 when available.
DENVER
Delta Petroleum
will aid SEC inquiry
Delta Petroleum Corp., an independent energy exploration and development company, announced that the Securities and Exchange Commission has asked for its voluntary cooperation in connection with an inquiry into stock-option grants and stock-option practices. The company has agreed to cooperate with the investigation.
The company told the staff that it would cooperate on a voluntary basis. As previously announced, Delta’s board of directors created a committee made up of independent directors to conduct an independent review of historical stock-option practices and related accounting.
DENVER
Workforce center open since 1997 closes
The Bear Valley Workforce Center, 3100 S. Sheridan Blvd., closed Friday. The center initially opened in 1997 as the Colorado Department of Labor Job Service Center.
During its nine-year run, staff provided job-search assistance and employment-skills training to more than 20,000 job seekers.
The Division of Workforce Development is collaborating with community service partners, neighborhood groups and schools to provide continued resources for job seekers in southwest Denver.
DENVER
SkyFuel founder
to present solar talk
A free public lecture Thursday on opportunities for solar energy in the Southwest will feature the founder of SkyFuel, a developer of large-scale thermal solar power plants.
Arnold Leitner, CEO and president of SkyFuel and a graduate of the University of Colorado at Boulder, will present “The Sunrise of Solar Power” at 7 p.m. in Duane Physics Room G-1B20 at CU-Boulder. For more information, call 303-492-6953.
GENEVA
Official urges nations to save trade talks
Failure by top trading powers to resolve their differences in global commerce negotiations augurs badly for the world’s poor, a top U.N. official said Monday.
Mark Malloch Brown, U.N. Secretary-General Kofi Annan’s most senior deputy, urged nations to do their utmost to save the troubled Doha round of talks.
Pascal Lamy, director-general of the World Trade Organization, had warned that last week’s talks were the last realistic chance for countries to find agreement on lowering barriers in trade and manufactured goods, where disagreement has held up the talks for months.
LONDON
U.S. holiday travel boosts crude prices
Crude oil rose to its highest in more than eight weeks in London on signs that near-record prices haven’t slowed consumer demand for gas in the U.S. during the peak summer driving season. About 34.3 million Americans are expected to travel by car during the July 4 holiday.
Brent crude oil for August settlement was trading for $73.63 a barrel, up 12 cents, on the London-based ICE Futures exchange. Oil in New York on June 30 fell 8 cents to $73.85 a barrel.
LONDON
Miller parent to buy “energy beer” brands
SABMiller PLC, the parent of Miller Brewing Co., has agreed to buy the Sparks and Steel Reserve brands from San Francisco-based McKenzie River Corp. for $215 million in cash. The deal is a move into the “energy beer” market, Miller said Monday.
London-based SABMiller is the world’s third-largest brewer, behind InBev NV/SA of Belgium and Anheuser-Busch Cos. of St. Louis. The deal is subject to a review by U.S. antitrust authorities.
WASHINGTON, D.C.
Northwest, Delta shed the most flights
Delta and Northwest airlines have shed more flights in the past year than any other U.S. carriers as the two troubled companies scramble to cut costs and match offerings with demand.
This month, Delta is offering 14 percent fewer flights than in July 2005 and Northwest is offering 15 percent fewer, according to a USA Today analysis.
Combined, the airlines and their affiliated carriers have cut more than 1,000 flights a day from July 2005, or about as many flights as offered by the 10th-largest U.S. carrier, Alaska Airlines.
WASHINGTON
Interest rates mixed on T-bill auctions
Interest rates on short-term Treasury bills were mixed in Monday’s auction, with rates on six-month bills dipping slightly and rates on three-month bills climbing to their highest in more than five years.
The Treasury Department auctioned $15 billion in three-month bills at a discount rate of 4.955 percent, up from 4.905 percent last week. An additional $14 billion in six-month bills was auctioned at a discount rate of 5.090 percent, down from 5.110 percent last week.
