Business News Digest

NATION
Economy showsconsiderable upgrade
WASHINGTON -- The economy lost steam in the late summer but not nearly as much as first thought, a hopeful sign the country is weathering the housing slump.
The Commerce Department reported Wednesday that economic growth clocked in at a 2.2 percent annual rate in the July-to-September quarter. The new reading was a considerable upgrade from the government's earlier estimate of a 1.6 percent growth rate, which would have been the worst showing in more than three years if it had held up.
Pfizer to cut jobsin U.S. sales force
NEW YORK -- Pfizer Inc.'s decision to cut 20 percent, or 2,200 jobs, from its U.S. sales force may trigger other companies to slash their own ranks of representatives, ending an expensive and not especially efficient arms race, analysts said. Pfizer said it would cut the jobs as part of a cost-cutting program to transform the company into a more nimble organization as it struggles with sluggish sales.
Analysts applauded the move, which they speculated could save Pfizer between 400 million and 500 million annually. But beyond the benefits for Pfizer, analysts hoped other companies would consider paring back their own expensive sales forces as some of them face patent expirations and lackluster pipelines.
Associated Press