Business Highlights

By The Associated Press

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US retail sales rise for 3rd month but slowdown expected

WASHINGTON (AP) — Americans increased their retail purchases by 1.2% in July, with solid gains in appliances and clothing, restoring sales to their level before the viral pandemic erupted in March. Sales at retail stores and restaurants have now risen for three straight months, after enormous plunges in March and April, when the pandemic suddenly shuttered businesses and paralyzed the economy. Still, much of that spending has been fueled by government relief spending that had put more money in people’s pockets but has since expired. With Americans’ overall income likely shrinking, economists expect a potential drop in spending and a weakening of economic growth.

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Stocks barely budge on Wall Street; S&P 500 just shy of high

NEW YORK (AP) — Major stock indexes on Wall Street ended Friday more or less where they started after a day of drifting between small gains and losses. The S&P 500 was virtually unchanged after dipping less than 1 point, while the Dow edged 0.1% higher. The market was nearly evenly split between rising and falling stocks after a report showed that sales for U.S retailers strengthened again last month, but by less than economists expected. The S&P 500 ended with its sixth weekly gain in the last seven after briefly crossing above its record closing high twice this week.

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US productivity rises 7.3% as hours worked are nearly halved

SILVER SPRING, Md. (AP) — U.S. productivity rose at a 7.3% rate in the second quarter as the number of hours worked fell by nearly half, the biggest dropoff since the government started tracking the data. The Labor Department said Friday that output decreased 38.9%, also the biggest decline ever recorded. Hours worked fell 43% in the period, a direct result of the economic damage caused by the coronavirus pandemic. The increase in productivity was the largest since 2009. Labor costs also jumped, rising 12.2%. Friday’s report is the first estimate of second-quarter productivity and follows the first quarter’s 0.3% decline.

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US industrial production up 3%; factory output up 3.4%

WASHINGTON (AP) — American industry continued to regain ground lost in the coronavirus recession last month but production remains well below where it was before the pandemic struck.The Federal Reserve reported Friday that industrial production — including output at factories, mines and utilities — climbed 3% in July after surging 5.7% in June. Still, production remains 8.4% below its level in February before the outbreak began to spread rapidly in the United States. Factory output rose 3.4% last month, pulled higher by a 28.3% gain in production of cars, trucks and auto parts. Mining production blipped up 0.8%, snapping five straight months of decreases, Utility output climbed 3.3% as hot weather forced many Americans to turn on the air conditioner.

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China factory output flat, retail sales slip in July

BEIJING (AP) — China has reported its factory output rose just under 5% last month from a year earlier while retail sales fell slightly. The data released Friday show that despite a rebound in Chinese exports, overall domestic demand is muted as the country recovers from the coronavirus pandemic. Officials said that overall, China created nearly 2 million fewer jobs than would normally be expected. There were signs of improvement in investment in factories and construction, which fell 1.6% in January to July, compared with a 3.1% contraction in the first half of the year.

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Judge refuses to reconsider GM lawsuit against Fiat Chrysler

DETROIT (AP) — A federal judge in Detroit says he won’t reconsider his July dismissal of General Motors’ racketeering lawsuit against Fiat Chrysler Automobiles. U.S. District Judge Paul Borman wrote in an opinion Friday that new evidence presented by GM regarding bribes and foreign bank accounts “is too speculative to warrant reopening” the case. GM alleges that FCA paid bribes to two former United Auto Workers presidents, as well as a former union vice-president and at least one former GM employee. It says payments were made so the officials would saddle GM with more than $1 billion in additional labour costs.

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Apple, Google drop Fortnite from app stores over payments

NEW YORK (AP) — Apple and Google have dropped the popular game Fortnite from their app stores after the game’s developer introduced a direct payment plan that bypasses their platforms. Both Google and Apple take a cut from in-app revenue purchases, which has long been a sore spot with developers. Fortnite is free, but users can pay for in game accoutrements like weapons and skins. The game’s developer, Epic Games, said in a blog post it was introducing Epic Direct payments, which lets the company sidestep the app-store fees. Apple and Google said the service violates their guidelines.

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The S&P 500 edged down 0.58 of a point, or less than 0.1%, to 3,372.85. The Dow Jones Industrial Average inched up 34.30 points, or 0.1%, to 27,931.02, while the Nasdaq composite dipped 23.20 points, or 0.2%, to 11,019.30. The Russell 2000 index of smaller-company stocks fell 1.91 points, or 0.1%, to 1,577.88.

The Associated Press

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