Business briefs: Economy nearer to stability
Published 9:36 pm Tuesday, May 12, 2009
Despite weak performances in three areas — trade, home sales and job openings — the U.S. economy appears closer to stabilizing, though at low levels, economists said. The Commerce Department said the trade deficit widened to $27.6 billion in March, from February’s revised $26.1 billion gap, which had been the smallest since November 1999. Through the first three months of 2009, the trade deficit ran at an annual rate of $359.7 billion, below last year’s $681.1 billion. Economists expect the deficit will remain low this year as the U.S. recession crimps demand for foreign goods. The global downturn also has cut into sales of U.S. exports. That could limit any improvement in the trade gap, which reflects the higher value of America’s imports compared with its exports.
AirTran planes adding Internet
AirTran Airways will become the first major airline to add high-speed Internet service to all of its planes, in a move that could pressure other airlines to speed up plans to offer the service. The Florida-based airline said Tuesday that it would offer Wi-Fi service, powered by Aircell, on its 136 jets by midsummer. It’s the most aggressive move to date by a large airline to allow passengers to browse the Web using their laptops, smart phone or PDAs. AirTran will charge $9.95 for flights under three hours and $12.95 for longer flights. It will cost $7.95 for a customer to access the Internet with a smart phone.
Intel chip sales beat expectations
Intel’s chief executive says chip orders have been “a little better than we expected” so far in the second quarter. Paul Otellini told analysts Tuesday at Intel’s headquarters that he stands by his comment last month that personal computer sales have “bottomed out” and are recovering from their worst slump in six years. The first and second quarters are typically the toughest for chip makers. Otellini says he’s convinced things are recovering to normal seasonal patterns.
Foreclosures climb 32 percent in U.S.
The number of U.S. households faced with losing their homes to foreclosure jumped 32 percent in April compared with the same month last year, with Nevada, Florida and California showing the highest rates, according to data released Wednesday. More than 342,000 households received at least one foreclosure-related notice in April, RealtyTrac Inc. said. That means one in every 374 U.S. housing units received a foreclosure filing last month, the highest monthly rate since the Irvine, Calif.-based foreclosure listing firm began its report in January 2005. April was the second straight month with more than 300,000 households receiving a foreclosure filing, as the number of borrowers with mortgage troubles failed to abate. The April number, however, was less than 1 percent above that posted in March, when more than 340,000 properties were affected.
From Herald news services
