Economy Briefs

OUTLOOK

Economy grows as consumers rebound

The U.S. economy grew modestly over the summer after nearly stalling in the first six months of the year, lifted by stronger consumer spending and greater business investment.

The Commerce Department said Thursday that the economy expanded at an annual rate of 2.5 percent in the July-September quarter. That’s the strongest growth in a year and nearly double the 1.3 percent growth in the April-June quarter. It’s also a vast improvement over the anemic 0.9 percent growth for the entire first half of the year.

While 2.5 percent growth is enough to ease recession fears, it’s far below what’s needed to lower painfully high unemployment, which has been near 9 percent for the past two years. Analysts project similar growth for the October-December quarter.

UNEMPLOYMENT

Claims for aid dip but remain high

The number of people seeking unemployment benefits dipped slightly last week, though not by enough to suggest that hiring is picking up.

Weekly applications for unemployment benefits declined 2,000 to a seasonally adjusted 402,000, the Labor Department said Thursday. That’s the fourth drop in six weeks.

Still, the four-week average, a less volatile measure, rose to 405,500. The average had fallen to a six-month low two weeks ago.

Despite the recent declines, applications are stuck above 400,000, where they have been for all but two weeks since March. Applications need to fall consistently below 375,000 to signal sustainable job growth. They haven’t been below that level since February.

TECHNOLOGY

HP to keep personal computer division

NEW YORK | Hewlett-Packard Co. said Thursday that it has decided against spinning off or selling its Personal Systems Group unit.

The PC manufacturer said that it reached its decision after evaluating the strategic, financial and operational impact of spinning off the business unit - the world’s biggest manufacturer of desktop and notebook computers for consumers and businesses.

The unit supplies a third of HP’s revenue, but is its least profitable division.

Hewlett-Packard President and CEO Meg Whitman said keeping the unit within the company is right for the company, its customers, shareholders and business partners.

AVON

Stock sinks on SEC probe, pulled outlook

NEW YORK | Avon Products Inc. said Thursday the Securities and Exchange Commission is investigating its contact with financial analysts in 2010 and 2011, the latest roadblock for the cosmetics direct seller that is struggling to turn around its results.

Avon also reported its third-quarter net income slipped a worse-than-expected 1 percent, hurt by complications implementing a business system in Brazil and the uncertain global economy. The New York company said it is reviewing all aspects of its business and withdrew its full year revenue guidance.

Shares, which were already down 21 percent since the beginning of the year, dropped another 18 percent by Thursday afternoon.

RECALL

Pine nuts recalled over salmonella concerns

ROCHESTER, N.Y. | Turkish pine nuts sold in bulk at Wegmans, an upscale grocery store chain, have been linked to a salmonella outbreak that sent two people to hospitals and sickened 40 others in five East Coast states and Arizona.

Wegmans Food Markets Inc. said Thursday it has recalled 5,000 pounds of pine nuts imported from Turkey by Sunrise Commodities of Englewood Cliffs, N.J. They were sold between July 1 and Oct. 18 at its stores in New York, Pennsylvania, New Jersey, Virginia and Maryland.

The Rochester, N.Y.-based chain said the recall applies only to Turkish pine nuts purchased in bulk. Wegmans placed automated calls to more than 13,000 customers who bought the nuts using the company’s Shoppers Club discount card, spokeswoman Jo Natale said.

The Centers for Disease Control and Prevention reported that 26 people were sickened in New York, eight in Pennsylvania, four in Virginia, two in New Jersey and one person each in Arizona and Maryland. The Food and Drug Administration said it is investigating.