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The Honolulu Advertiser
Posted on: Wednesday, October 28, 2009

BUSINESS BRIEFS
Consumer confidence gloomiest in 30 years

Advertiser Staff and News Services

Hawaii news photo - The Honolulu Advertiser

A sign advertises a home for sale in Seattle's Queen Anne neighborhood. Home prices in the United States rose again in August, new data showed yesterday.

ASSOCIATED PRESS FILE PHOTO | January 2009

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CHICAGO — In a sign that talk of an economic recovery has yet to soothe a recession-battered nation, consumer confidence fell in October and was below what analysts were expecting.

For stores, the reading is reason to worry that holiday sales might be even worse than they feared.

In a separate reading, the Conference Board reported shoppers' sentiments about the state of the economy are the gloomiest in nearly three decades. Americans reported they plan to cut back on spending, largely because of fears about their jobs.

The board's index of consumer confidence fell to 47.7 in October from 53.4 in September. Economists were expecting only a small decline, to 53.1. It takes a reading of 90 to indicate an economy on solid footing.

AUGUST HOME PRICES CONTINUE GROWTH

NEW YORK — Home prices rose in August for the third straight month, a rapid pace of recovery that surprised economists and raised questions about how long the trend can last.

After a steep three-year descent, home prices rebounded this summer at an annualized pace of almost 7 percent, the Standard & Poor's/Case-Shiller home price index showed yesterday.

Against a backdrop of rising unemployment and falling consumer confidence, the speed of the recovery stumped Robert Shiller, economist and co-creator of the index.

The Case-Shiller index of 20 major cities climbed 1 percent from July to a seasonally adjusted reading of 144.5. While prices were down 11.4 percent from August a year ago, the annual declines have slowed since February.

FORD CARS IMPROVE IN RELIABILITY SURVEY

DETROIT — Asian automakers once again dominate the upper ranks of Consumer Reports' annual vehicle-reliability survey, although Ford Motor Co. is making strides in improving the dependability of its cars and light trucks.

Ford's sustained production of vehicles that are as dependable as — or better than — some of the industry's best models dispels the notion that only Japanese manufacturers make reliable cars, the consumer magazine reported yesterday.

The Ford Fusion and its cousin, the Mercury Milan, ranked higher in predicted reliability than any family sedan in the CR survey save the Toyota Prius. The cars beat out the Honda Accord and Toyota Camry, while the Lincoln MKZ topped the rival Acura TL and Lexus ES.

U.S. STEEL CORP.'S LOSSES PERSISTING

PITTSBURGH — United States Steel Corp. lost money for a third straight quarter as the global economic downturn dragged down demand for the metal used in everything from cars to office furniture.

The loss highlights an industrywide slump that began when the economy faltered late last year. Key customers in construction, car making and industrial equipment scaled back buying and steel makers like U.S. Steel, based in Pittsburgh, responded by winding down production and laying off thousands of workers.

Although prices and production rose during the third quarter as steel distributors scrambled to fill orders after depleting their stockpiles, the market for the metal remained far weaker than it had been a year earlier, when U.S. Steel notched record profits.