BUSINESS BRIEFS
Latest data paint fuzzy picture of road to economic recovery
Associated Press
WASHINGTON — The Great Recession may be over, but the recovery is just beginning — and it doesn't promise to be much easier.
Economists forecast the nation's total output grew at an annual rate of 3.3 percent between July and September, after contracting for a record four straight quarters. That growth has been fueled by a huge influx of government cash, including a temporary tax credit for first-time homeowners and a $1.25 trillion Federal Reserve program to keep mortgage rates low.
Both efforts are likely to end by next summer, and the housing industry is already feeling it. New home sales in September unexpectedly fell 3.6 percent, the first decline since March and a distinct sign of weakness in a market that had rebounded strongly over the summer. Homebuilders are usually big employers, but the industry isn't hiring yet because of sluggish sales.
VERIZON TROTTING OUT DROID TO KEEP SMART-PHONE PACE
NEW YORK — Verizon Wireless' answer to the iPhone — the Droid — will go on sale for $200 next week as the company taps into the growing appetite for smart phones that go far beyond making calls.
The Droid could help Verizon retain its status as the nation's largest wireless carrier and contribute to a turnaround of its manufacturer, Motorola Inc., which hasn't produced a hit since the Razr phone in 2005.
The new device also could give a boost to Google Inc., which used the Droid to unveil new mapping software that could challenge standalone navigational devices, sending GPS gadget maker Garmin Ltd.'s stock plunging after yesterday's announcement.
GOODYEAR'S STRONG QUARTER OFFSET BY GLOOMY FORECAST
CLEVELAND — Goodyear Tire & Rubber Co.'s profit more than doubled in the third quarter, helped by cost-cutting, new products and lower raw material costs. But its shares plummeted on its forecast for an operating loss in its key North American market this quarter.
The third-quarter performance marked a reversal by Goodyear, which had reported $554 million in losses in the first six months of the year as the recession staggered the automotive industry, a key customer.