The U.S. economy’s service sector, which employs 90 percent of the nation’s work force, grew in May for an 18th straight month, posting slightly faster growth than in April. The Institute for Supply Management said Friday its index tracking the health of service companies increased to 54.6 in May compared from 52.8 in April. The past three months have had lower readings than in February, when the index hit a five-year high of 59.7. Any reading over 50 indicates expansion. Many economists had expected a slight rebound in May because they thought a big drop in the index in April was overstating the weakness in the service sector. But the private trade group of purchasing managers said companies responding to its May survey still cited concerns about high fuel costs and rising prices for other commodities.
Internet users fear business snooping
It’s not Big Brother, but “big business” that Internet users are more worried about. A new survey found that nearly half of Internet-connected Americans age 16 and older worry about businesses checking what they do online. By comparison, 38 percent worry about the government doing so. Not that those concerns are stopping people from using the Internet for shopping, social networking and a smattering of other activities. The latest study, released Friday from the Center for the Digital Future at the University of Southern California found that 82 percent of Americans use the Internet, the same as in 2009. On average, they spend more than 18 hours a week online — for browsing the Web (79 percent), for banking (47 percent) and for social networking and video-sharing (46 percent).
Tesla stock sale to raise $211 million
Electric car upstart Tesla Motors Inc. said Friday that it has priced a secondary public stock offering at $28.76 per share, and it has buyers for all 5.3 million additional shares. In addition to the shares in the public offering, CEO and co-founder Elon Musk will buy 1.4 million shares in a private sale at the same price. Blackstar Investco LLC, an affiliate of Daimler AG, also will buy 637,475 shares directly from Tesla, the company said in a statement. The Palo Alto, Calif., company gave no date to complete the sale, which will raise a total of $211 million to be used mainly to develop a crossover vehicle to expand the company’s model lineup. In addition, Goldman, Sachs & Co., the sale underwriter, has a 30-day option to buy another 795,000 shares, raising another $22.9 million.
People’s Bank opens Whidbey office
Lynden-based Peoples Bank will open a new Home Loan Center June 13 in Freeland on Whidbey Island. The new office is at 5589 Harbor Ave. and will serve south Whidbey Island. Jo Dallas, Island County real estate loan manager, will manage the office. Kevin Engtrom is real estate loan assistant manager.
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