The U.S. economy, powered by a red-hot housing market and a huge dose of spending for the war in Iraq, grew at a surprisingly strong 3.3 percent clip last quarter and raised hopes for an even better performance the rest of the year. The increase announced Friday in the gross domestic product for the April-June period represented an upward revision from a 3.1 percent estimate a month ago, reflecting greater strength than previously thought in housing and several other sectors. Analysts said growth in the July-September quarter would be at a significantly higher rate, fueled by President Bush’s third round of tax cuts, which took effect in July.
Segway scooters, touted as almost untippable when unveiled two years ago, are being recalled. It turns out they don’t work so well when the batteries get low. Riders have fallen off and been injured. The Consumer Product Safety Commission announced the recall Friday of all 6,000 scooters that have been sold, saying three people were injured. One suffered a head wound and needed stitches. Segway is offering to install for free new software that warns when battery power is running down, and then automatically shuts down the scooter. Newly built scooters contain the upgraded software.
United Auto Workers union members ratified a four-year labor contract with DaimlerChrysler AG, the first rank-and-file endorsement of the pacts reached last week by union leaders and the Big Three automakers. UAW spokesman Roger Kerson said Friday that ratification vote results for General Motors Corp. and Ford Motor Co. were expected early next week. The DaimlerChrysler contract covers more than 60,000 active UAW workers, as well as more than 57,000 retirees and an additional 17,500 surviving spouses of retired workers. Hourly workers will receive a $3,000 upfront signing bonus, a performance bonus in the second year of the contract, a 2 percent raise in the third year of the contract and a 3 percent raise in the fourth year.
State officials who are trying to convince the Boeing Co. to build its 7E7 Dreamliner either in Everett or in Moses Lake say they are confident the new jet will be assembled in Washington. A headline over a story that appeared on Page D1 Friday incorrectly suggested the state was promoting just one site.
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