Business news with words department+prices+spending. 21 news.

OIL prices drifted higher in light holiday trading yesterday after predictions of a drop in crude inventories raised new supply concerns. With little other news to motivate buying or selling, investors focused on forecasts by analysts including Addison Armstrong, director of exchange traded markets at TFS Energy Futures LLC, who predicted crude inventories fell by 1.5 million barrels last week. Tim Evans, an analyst at Citigroup Inc, predicted that crude stocks fell by 2 million to 3 million barrels. The Energy Department's Energy Information Administration reports oil inventories on Thursday this week, a day late due to Christmas. Light, sweet crude for February delivery rose 82 cents to settle at US$94.13 a barrel on the New York Mercantile Exchange after falling as low as US$92.50 earlier. Prices rose more than US$2 on Friday after the government reported consumer spending jumped more than expected in November, raising hopes that the economy will weather the crisis roiling

OIL prices jumped in light trading yesterday after the government reported that consumer spending surged last month, raising hopes that the US economy will weather the crisis roiling credit markets and that demand for oil and gasoline will strengthen. The Commerce Department said consumer spending jumped 1.1 percent in November, the biggest one-month gain since 2004 and well above analyst expectations for an 0.7 percent increase. Light, sweet crude for February delivery rose US$2.25 to settle at US$93.31 a barrel on the New York Mercantile Exchange. Oil prices were also supported by stocks, which rose yesterday, and a slightly weaker dollar. Energy investors often view stock market moves as reflective of overall economic sentiment. Also, oil futures offer a hedge against a weak dollar, and oil futures bought and sold in dollars are more attractive to foreign investors when the greenback is falling. Many observers blame oil's rise last month to near US$100 on speculators

Reuters - U.S. personal spending jumped a much bigger-than-expected 1.1 percent in November, the sharpest rise in more than two years, while prices rose, a Commerce Department report showed on Friday.

WASHINGTON (Reuters) - U.S. personal spending jumped a much bigger-than-expected 1.1 percent in November, the sharpest rise in more than two years, while prices rose, a Commerce Department report showed on Friday.

CRUDE oil fell below US$90 a barrel on Friday in the biggest weekly loss in two and a half years on concern that slowing economic growth will cut energy demand. Saudi Oil Minister Ali al-Naimi said supplies in the market were "ample." Consumer spending in the US rose less than forecast in October and incomes increased at the slowest pace in six months, the United States' Commerce Department said in Washington. Al-Naimi, speaking in Doha, said oil prices didn't reflect actual production and consumption trends, Bloomberg News reported. "The market is simply becoming more concerned about a possible recession that could reduce petroleum demand," said James Ritterbusch, president of Ritterbusch & Associates in Galena, Illinois. "We have been seeing evidence for some time of a weakening economy and weakening oil demand." Crude oil for January delivery fell US$2.30, or 2.5 percent, to settle at US$88.71 a barrel at 2:45pm on the New York Mercantile

WASHINGTON (Reuters) - U.S. personal spending edged up a smaller-than-expected 0.2 percent in October while prices rose at a modest pace, Commerce Department data showed on Friday in a report that may heighten concerns about the health of the U.S. consumer.

Reuters - Personal spending edged up a smaller-than-expected 0.2 percent in October while prices rose at a modest pace, Commerce Department data showed on Friday in a report that may heighten concerns about the health of the U.S. consumer.

WASHINGTON (MarketWatch) - Growth in U.S. consumer spending ground to a halt in October, while inflation eroded American households' modest gains in income, the Commerce Department reported Friday. Nominal incomes rose just 0.2% in October. But after accounting for the 0.3% rise in prices, real after-tax incomes fell 0.1%. Consumer spending increased 0.2% in nominal terms and was flat after adjusting for inflation. Both incomes and spending were slightly weaker than expected on Wall Street. Inflationary pressures were steady in October. The personal consumption expenditure price index rose 0.3% for a second straight month. Core prices, which exclude food and energy prices, rose 0.2% for the second straight month. Core inflation was steady at 1.9% over the past year, just within the Fed's unofficial comfort zone.

Reuters - Retail sales rose a sluggish 0.2 percent in October, matching economists' expectations, as a housing downturn and steep oil prices constrained consumer spending, Commerce Department data on Wednesday showed.

CRUDE oil prices shot higher and then retreated yesterday, reaching a new record of US$96 a barrel before concerns about the US economy and France's decision to release oil from its strategic petroleum reserve motivated investors to cash in some of their recent gains. The Commerce Department's report that consumer spending rose by 0.3 percent in September, less than the 0.4 percent increase analysts expected, raised the prospect of a slowing economy that could depress demand for oil. And downbeat news about manufacturing came from the Institute for Supply Management, which said industrial activity grew in October at the weakest pace since March. Still, oil prices have surged 20 percent in one month, and when any market rises that far that fast, investors tend to sell to lock in some of their gains. The Federal Reserve's decision to cut interest rates a quarter-percentage point on Wednesday got a mixed reception in the oil market but probably contributed to some of Thursday's

NEW YORK Wall Street plunged in early trading today as surging oil prices and slower growth in consumer spending erased optimism about the Federal Reserve's positive take on the economy just a day earlier. The Dow Jones industrials skidded more than 200 points. Inflation fears revived as crude oil vaulted to a record $96 a barrel. Meanwhile, a report from the Commerce Department indicated consumers scaled back their spending in September as worries mounted about a worsening housing market and further credit market turmoil. That combination led investors to retreat from Wednesday's rally,

WASHINGTON (MarketWatch) - The U.S. economy shook off the worst housing downturn in a generation to grow at a 3.9% annual pace in third quarter, the best performance in six quarters, the Commerce Department estimated Wednesday. The increase in gross domestic product was better than the 3.4% gain expected by economists surveyed by MarketWatch. Growth was well-balanced in the period from July to September, with strong contributions from consumers, exports, capital spending, military spending, and inventory building. Housing investments continued to be a major drag. Despite rising worries about commodity prices, the GDP price index, the broadest measure of price changes in the economy, rose just 0.8% annualized, matching a nine-year low. Consumer prices rose 1.7%, while core consumer prices, which exclude food and energy prices, rose 1.8%, just within the Federal Reserve's target zone.

WALL Street closed slightly lower in erratic trading yesterday as investors, uneasy about the credit markets and record-high oil prices, took little solace from reports on new home sales and durable goods orders. The Commerce Department said sales of new homes rose 4.8 percent in September from August's levels. The market initially popped on the data, as economists had predicted a decline. But it eventually pulled back because the sales increase was due to a big downward revision in August's decline, and that homebuilders had offered discounts in September to move inventory. "The sad part is, even with the discounts, we still have inventory overhang. And that's a problem," said Michael Strauss, chief economist at Commonfund. He noted that home prices are still falling, as are sales of existing homes, which make up the majority of the housing market. Another report showed that orders of big-ticket items, one gauge of business spending, fell 1.7 percent in September,

A SERIES of international sports events helped boost Shanghai's retail sales by a fifth during last week's National Day holiday, the city's economic commission said yesterday. Sales generated by the 425 retailers surveyed jumped 20.5 percent to 5.1 billion yuan (US$680 million) between October 1 and 7 from the same period last year, the Shanghai Economic Commission said in a report. The growth rate was 3.7 percentage points higher than the pace registered during the Labor Day holiday in May and 6.1 percentage points higher than February's Spring Festival. Chen Yuxian, author of the report, attributed the Golden Week spending boom partly to the FIFA Women's World Cup soccer championship, the Special Olympics and the Formula One Chinese Grand Prix, which all brought large numbers of athletes and sports fans to town. "Several local shopping and tourism events coincided with the holiday, plus the good weather also pushed up sales," Chen said. Hundreds of theme events were held citywide as part of the Shanghai Shopping Festival, including the Luwan District's imported food show, an international shopping carnival in Jing'an District, Huangpu's jewelry fete and a wine-tasting gala in Hongkou District. Hypermarkets, supermarkets and convenience stores were the leading contributors to the consumption boom, accounting for 41.2 percent of the total retail sales, the report said. Sales in department stores and shopping malls also rose. But sales in the restaurant sector fell 16.4 percent to 137.8 million yuan from the same period a year earlier, and receipts for hotels and related service businesses dropped 3.2 percent to 97.2 million yuan, the report said, without stating a reason. Local retail powerhouse Shanghai Brilliance (Group) Co generated 1.69 billion yuan in sales over the weeklong holiday, up 20.7 percent year on year and topping the eight major business groups surveyed by the commission. Meanwhile, retail sales in the suburbs totaled 763 million yuan, up 16.6 percent, led by Nanhui, Songjiang, Jinshan, Qingpu and Baoshan districts, which reported a rise of more than 25 percent. The report also said food prices remained stable during the holiday, with meat prices falling from the pre-holiday period while prices of green-leaf vegetables were up slightly.

Stocks dipped a bit Friday, the last trading day of the third quarter, with Wall Street relieved about solid readings on the economy but cautious ahead of October's corporate earnings reports. The market's losses were small, thanks to positive reports on consumer spending, construction spending, inflation and Midwest manufacturing. Though strong economic data might lower the chance that the Federal Reserve will further reduce rates, the tame inflation measure kept hopes of a rate cut alive. Last week, the Fed, reacting to August's tightening credit and plunging stocks, helped restore confidence in the financial markets by decreasing the federal funds rate target by a half-point to 4.75 percent. The central bank's rate decrease, the first in four years, helped the major stock indexes finish in positive territory for the quarter. "A second Fed cut will go a long way in reassuring the stock market that the worst is over. The focus going forward will be whether the Fed is going to lower rates to shore this up, or decide the risk of inflation is too high," said Janna Sampson, director of portfolio management at Oakbrook Investments. Though energy and food prices are surging, core inflation has been within the Fed's comfort zone of 1 to 2 percent. The Commerce Department's consumer spending report showed that a key core inflation gauge logged a year-over-year rise in August of 1.8 percent -- the smallest increase since 2004.

STOCKS dipped a bit yesterday, the last trading day of the third quarter, with Wall Street relieved about solid readings on the economy but cautious ahead of October's corporate earnings reports. The market's losses were small, thanks to positive reports on consumer spending, construction spending, inflation and Midwest manufacturing. Though strong economic data might lower the chance that the Federal Reserve will further reduce rates, the tame inflation measure kept hopes of a rate cut alive. Last week the Fed, reacting to August's tightening credit and plunging stocks, helped restore confidence in the financial markets by decreasing the federal funds rate target by a half point to 4.75 percent. The central bank's rate decrease, the first in four years, helped the major stock indexes finish in positive territory for the quarter. "A second Fed cut will go a long way in reassuring the stock market that the worst is over. The focus going forward will be whether the Fed is going to lower rates to shore this up, or decide the risk of inflation is too high," said Janna Sampson, director of portfolio management at Oakbrook Investments. Though energy and food prices are surging, core inflation has been within the Fed's comfort zone of 1 percent to 2 percent. The Commerce Department's consumer spending report showed that a key core inflation gauge logged a year-over-year rise in August of 1.8 percent _ the smallest increase since a similar rise in February 2004. But continuing to weigh on investors is the concern that corporate profits dropped off in the third quarter. Yesterday is the last trading day of one of the most volatile periods in years, one that pulled stocks sharply lower after the Dow Jones industrial average closed at a record 14,000.41 in mid-July. Wall Street now is bracing for signs, ahead of the mid-October onslaught of earnings reports, of how companies fared during the summer's tumult. The Dow slipped 17.31, or 0.12 percent, to 13,895.63. The blue-chip index ended the third quarter 3.6 percent higher, and is up 11.5 percent for the year. The Standard & Poor's 500 index fell 4.63, or 0.30 percent, to 1,526.75, finishing the quarter up 1.6 percent. The S&P is up 7.7 percent for the year. The Nasdaq composite index fell 8.09, or 0.30 percent, to 2,701.50, and closed the quarter with a gain of 3.8 percent. The Nasdaq is up 11.9 percent for the year. But the Russell 2000 index of smaller companies has not recover

CONSUMER spending in the US rose more than forecast in August, a sign the fallout from a weaker job market and collapse in subprime lending has yet to reach the biggest part of the economy. The 0.6-percent rise in spending was the biggest in four months and followed a 0.4-percent increase in July, the Commerce Department said yesterday in Washington. The Federal Reserve's preferred measure of inflation cooled. Lower gasoline prices, auto-dealer discounts and a jump in air-conditioning use during last month's hot spell lifted demand, economists said. Smaller price increases give Fed policy makers room to reduce interest rates again should job losses and declines in home values lead to a deeper slowdown. "The third quarter should look good for consumer spending but that may be the high-water mark," Jonathan Basile, an economist at Credit Suisse Holdings in New York, said before the report. "We're seeing job growth moderate and housing becoming a bigger drag and that will continue to pour downward pressure on spending." US Treasury securities held earlier gains following the report. The yield on the benchmark 10-year note was at 4.54 percent at 8:35am in New York, from 4.57 percent late yesterday. Stock index futures trimmed losses. Incomes increased 0.3 percent in August after 0.5 percent, yesterday's report also showed. Income was forecast to rise 0.4 percent, according to the Bloomberg News survey median. Economists forecast spending, which makes up more than two-thirds of the economy, would rise 0.4 percent for a second month, according to the median of 76 estimates in the Bloomberg survey. The report's price gauge tied to spending patterns and excluding food and energy costs, the Fed's preferred measure, increased 0.1 percent in August for a sixth consecutive month. It was up 1.8 percent from August 2006, the smallest gain since February 2004. Some Fed policy makers, including Ben S. Bernanke before becoming chairman, have said they would prefer core inflation within a one percent to two percent range. Adjusted for inflation, spending also rose 0.6 percent in August, the most since October, after a 0.3-percent gain the prior month, the report showed.

FORMER Federal Reserve Chairman Alan Greenspan said the odds on the first US recession in six years have increased as falling house prices threaten consumer spending. "The danger of recession has obviously risen," Greenspan said in an interview on BBC Radio 4 yesterday. He said the chances were "less than 50-50." In March Greenspan said they were about one in three. The Fed lowered its benchmark interest rate by half a percentage point to 4.75 percent this month in a bid to prevent a housing slump from spreading through the economy. Sales of new homes dropped 8.3 percent in August and prices plunged by the most since 1970, the Commerce Department said on Thursday. Greenspan "is right in pointing to the risks of a US recession," Matthew Sharratt, an economist at Bank of America Corp, told Bloomberg News. "The clear risk that consumption may soften is a worry for the US." Former Treasury Secretary Lawrence Summers said in an interview on Thursday there was nearly an even chance of a recession, defined as two consecutive quarters of economic contraction. The Fed, which Greenspan left in January 2006, lowered interest rates after rising defaults on US subprime mortgages sparked a global credit crunch. Greenspan said yesterday that the effects of a housing slump in the UK would be very similar to what was happening in the US.

WASHINGTON (Reuters) - Consumers boosted their spending at the strongest rate in four months during August and core consumer prices posted their smallest year-on-year rise in 3-1/2 years, the Commerce Department reported on Friday.

Reuters - Consumers boosted their spending at the strongest rate in four months during August and core consumer prices posted their smallest year-on-year rise in 3-1/2 years, the Commerce Department reported on Friday.