BUSINESS BRIEFS
Jobless claims rise, factory orders plunge
Associated Press
WASHINGTON — Tight credit is taking a toll on manufacturing and jobs.
More people than expected lined up at the unemployment lines last week and orders to U.S. factories plunged by the largest amount in two years, according to government data released yesterday.
New applications for unemployment benefits rose slightly last week to a seven-year high because of a weakening economy and the impact of Hurricanes Ike and Gustav, the Labor Department said.
Meanwhile, the Commerce Department reported that factory orders in August plunged by 4 percent from July, a much steeper decline than the 2.5 percent analysts expected and the biggest setback since a 4.8 percent plunge in October 2006.
RETAILERS TRY TO PULL IN SHOPPERS
NEW YORK — Alarmed by the financial meltdown, stores nationwide are slapping sale signs on everything from fall sweaters to furniture — trying to attract shoppers, who have been cutting back.
Some analysts were already expecting the weakest holiday-season sales growth in 24 years. With uncertainty roiling the banking system and the economy teetering, retailers' outlook now seems bleaker.
At malls, shopping districts and on the Web, the discounts are growing desperate.
FED EMERGENCY LENDING RISES
WASHINGTON — Banks and investment firms ramped up borrowing from the Federal Reserve's emergency lending facility over the past week, providing fresh evidence of the credit stresses squeezing the country.
The Fed's report said commercial banks averaged $44.5 billion in daily borrowing over the past week. That compared with a daily average of $39.36 billion in the previous week.
For the week ending Wednesday, investment firms drew out $147.7 billion. That was up significantly from $88.15 billion in the previous week.
This category was broadened last week to include any loans made to the U.S. and London-based broker-dealer subsidiaries of Goldman Sachs, Morgan Stanley and Merrill Lynch.
