A private research group said the economy is rebounding from its spring slump and should grow modestly through the fall. The Conference Board said Friday that its index of leading economic indicators rose 0.8 percent last month. That’s an improvement from April, when the index dropped 0.4 percent — the first decline since June 2010. A string of declines would indicate that a recession was coming. The May report was the largest increase since February. Eight of the 10 measures the Conference Board uses to calculate the index increased. In April, only four showed improvement. The brighter reading suggests the economy will regain some of the momentum it lost this spring, when high gas prices cut into consumer spending and businesses pulled back on hiring. Conference Board economist Ken Goldstein cautioned that growth will be “choppy” through summer and fall, a point echoed by other economists.
Kmart lays off 700 appliance workers
The parent of Kmart stores is laying off 700 employees working in Kmart’s appliance departments as it changes how the stores sell refrigerators, ovens and other appliances. Kmart spokesman Chris Brathwaite says the move will allow customers to check out appliances at any register rather than going to a dedicated register for appliances. But there also won’t be any specialized appliance-only staff people on hand near appliances. Instead, all Kmart staffers are being trained to answer questions about appliances. There also will be a 1-800 number customers can call for help. The moves affect appliance specialists in 225 stores.
U.S. stops accepting mail to Canada
The U.S. Postal Service says it will stop accepting most mail to Canada effective Saturday night. Postal officials said they were acting because it appears labor problems being experienced by Canada Post will continue at least into sometime next week. The post office will continue to accept items to Canada sent by its premium Global Express Guaranteed service, which is delivered in Canada by FedEx Express.
Greek leader shuffles nation’s cabinet
Greek Prime Minister George Papandreou replaced his finance minister Friday in a broad cabinet reshuffle that won strong support from markets, optimistic that crucial austerity measures will now be passed to prevent a devastating near-term debt default. After two days of political chaos that threatened to bring down the government, Germany also appeared ready to provide billions more in aid to carry the debt-ridden country through 2014. German Chancellor Angela Merkel indicated that the private sector would not be forced to share in the pain of a second bailout. Together, the developments in Athens and Berlin boosted hopes Greece will get a second bailout and avoid a default, which had seemed to be just weeks away.
From Herald news services
Talk to us
> Give us your news tips.
> Send us a letter to the editor.
> More Herald contact information.
