Economy facing tough road ahead

Economy facing tough road ahead

WASHINGTON

The economic recovery won’t be catching fire any time soon. Businesses and governments are likely to reduce spending in the second half of the year. Consumers, who drive most economic growth, aren’t expected to take up the slack.

The Commerce Department said Friday that the economy grew at an annual rate of 2.7 percent in the first quarter, offering its third and final estimate for the period. It was slower than initially thought because consumers spent less and imports rose faster that previously calculated.

Economists anticipate even slower growth ahead as companies bring their stockpiles more in line with sales. Factory output has climbed this year. But it was driven more by businesses replenishing their warehouses after the recession and less by consumer demand.

SEC halts alleged $34M Ponzi scheme

WASHINGTON

The government said Friday it obtained a court order to halt an alleged $34 million Ponzi scheme targeting federal employees and law- enforcement agents nationwide with promises of safe investments in a nonexistent bond fund.

The Securities and Exchange Commission said the order issued Thursday by a federal judge in Miami also froze the assets of the estate of the late Kenneth Wayne McLeod, his consulting firm Federal Employee Benefits Group of Jacksonville, Fla., and an affiliated investment firm. The SEC alleged that McLeod and the firms defrauded an estimated 260 investors starting in 1988.

McLeod used their retirement savings to enrich himself and pay for lavish entertainment including yearly trips to the Super Bowl for himself and 40 friends, the SEC said in a civil complaint filed Thursday in federal court in Miami.

McLeod, who was 48 and lived in Jacksonville, died Tuesday. His body reportedly was found in a Jacksonville park with an apparent self-inflicted gunshot wound.

Abercrombie & Fitch brings back catalog

NEW YORK

Preppy teen retailer Abercrombie & Fitch is reinstating its racy A&F Quarterly catalog after a seven-year hiatus.

The catalog, shot by fashion photographer Bruce Weber, is available for pre-order on Abercrombie’s website for $10 and will be released July 17.

Abercrombie was among the teen retailers hit hardest when consumers cut spending in the recession and abandoned its relatively high-priced flannel shirts and jeans for products from lower-priced competitors such as Aeropostale Inc. and American Eagle Outfitters Inc.

Global summit

HUNTSVILLE, Ontario

Fresh from a congressional win on a financial overhaul, President Barack Obama pressed world leaders Friday to join him in backing stronger rules against banking abuses. He made little headway in his call for more stimulus to keep the world economy growing. Instead, he ran into strong opposition from countries wanting to put deficit reduction first.

Associated Press