Durable-goods orders up 1.7% in August
WASHINGTON -- Orders for long-lasting manufactured goods rose a modest 1.7 percent in August, reflecting a rebound in the volatile aircraft sector. A gauge of business investment was up for a second month, providing hope that a revival in manufacturing is gaining strength.
Last month's advance in orders for durable goods came after a 6.8 percent plunge in July, the Labor Department reported Wednesday. Both months were heavily influenced by swings in orders for commercial aircraft, which surged 44.8 percent in August after having plunged 71.1 percent in July.
A closely watched category that serves as a proxy for business investment posted a 0.9 percent gain in August after a 1.1 percent increase in July. Economists believe that U.S. factory output should continue rising in coming months, reflecting a rebound in the global economy.
Manufacturing has been improving since the middle of 2016, after a two-year slump caused by cutbacks in the energy industry and a strong dollar that made U.S. goods costlier overseas. Prospects are brighter now with the dollar weakening in value this year, which makes U.S. exports more competitive on overseas markets, and a rebound in energy drilling.
-- The Associated Press
Index of pending home sales falls 2.6%
Contract signings for the purchase of previously owned U.S. homes fell in August by the most in seven months, reflecting limited inventory, the National Association of Realtors said Wednesday. The Realtors group's revised forecast for the year calls for sales to weaken from 2016 in the wake of two hurricanes.
The index fell 2.6 percent after a 0.8 percent decline in July. The gauge has fallen 3.1 percent from August 2016 on an unadjusted basis.
A limited number of properties for sale fueled declines in contract signings for the fifth time in six months, a trend that will be made worse in the aftermath of hurricanes Harvey and Irma, the Realtors group said. Lean inventory is keeping prices climbing more than wages, creating a more challenging purchasing climate for first-time homebuyers.
The Realtors group projects 5.44 million homes will be sold this year, down from last month's estimate of 5.49 million and lower than the 5.45 million sold in 2016.
"August was another month of declining contract activity because of the one-two punch of limited listings and home prices rising far above incomes," Lawrence Yun, the association's chief economist, said in a statement. "Further complicating any sales improvement in the months ahead is the fact that Hurricane Harvey's damage to the Houston region contributed to the South's decline in contract signings in August, and will likely continue to do so in the months ahead."
-- Bloomberg News
Gulfport, Miss., to sell aquarium bonds
Gulfport, Miss., is hoping that alligators, river otters, dolphins and stingrays hold the key to revitalizing the economy of the second-largest city in the state.
The city is selling $35 million in tax-exempt bonds through a conduit this week to finance a public improvement project -- the Mississippi Aquarium. The "state of the art" aquarium, set to open in 2019 with a $93 million budget, will join casinos and new restaurants in downtown Gulfport.
Gulfport, with a population of about 72,000 people, has been hit with a string of economic challenges that predate even the 2008 recession. The city is still working on recovering resources spent on Hurricanes Katrina, Gustav and Isaac, bond documents say. It was also affected by the BP oil spill in 2010.
The aquarium is expected to attract 487,000 people per year on average and help generate $340 million in annual revenue for the Gulfport region, according to its website. It will "operate at no cost to the taxpayer" and create about 900 jobs, the website says.
-- Bloomberg News
Sonic reports 'unusual activity' on cards
NEW YORK -- Sonic says there's been some "unusual activity" on credit cards used at some of its restaurants.
The fast-food chain said in a statement that its credit-card processor told it about the incident last week and that it's now "working to understand the nature and scope of this issue." It did not disclose how many credit cards were potentially involved in the incident or when the incident took place.
There are more than 3,500 Sonic restaurants in 44 states, according to the company's website.
Sonic said it is working with third-party forensic experts and law enforcement officials. The potential breach at Sonic was initially reported by Krebs on Security.
Sonic, based in Oklahoma City, is not the first restaurant operator to deal with such issues. Last year, Wendy's announced that hackers were able to steal customers' credit- and debit-card information at more than 1,000 of its U.S. locations.
-- The Associated Press
Nike removes 'future orders' from report
Nike started cleaning up its stat sheet Tuesday. For the first time, the sneaker empire declined to report "future orders" in its quarterly earnings report. The number is a critical measure of wholesale demand from the galaxy of retailers that sell the shoes.
Nike said the prediction doesn't matter much anymore, because now it's focused on doing business directly with consumers and cutting out the middleman.
While Nike reported its slowest quarterly sales growth since 2010, its performance as a retailer -- rather than a wholesaler -- was a relative highlight. Sales on Nike's own Web store were up 19 percent in the recent quarter, while its retail locations notched a 5 percent gain in same-store sales. Chief Executive Officer Mark Parker said the company is obsessed right now with making shopping more personal. "Retailers who don't embrace distinction will be left behind," he warned on a conference call Tuesday.
Under Armour has a slight lead on Nike, with 31 percent of its sales coming directly from consumers; Adidas is slightly behind with 23 percent of revenue from retail. At its current pace, Nike soon will be collecting one in three of its sales dollars directly from consumers.
-- Bloomberg News
Business on 09/28/2017