Durable-goods orders increase

Durable-goods orders increase

WASHINGTON

A surge in demand for autos and aircraft drove orders for long-lasting manufactured goods higher in July, easing fears that the economy might be on the verge of another recession.

The rebound in the auto industry helped offset a decline in orders for most other factory goods.

Stocks rose after the better-than-expected report showed the biggest increase in durable-goods orders since March, when the Japan earthquake disrupted supply chains and slowed auto production.

The Dow Jones industrial average jumped about 100 points after the report came out. It later gave back some of those gains but closed up more than 140 points. Broader indexes were mixed.

Overall orders for durable goods rose 4 percent last month, the Commerce Department said Wednesday.

Budget deficit slips to $1.28 trillion

WASHINGTON

After months of unrelieved gloom and discord, Congress and President Barack Obama are starting to make a dent in the federal budget deficit. It’s projected to shrink slightly to $1.28 trillion this year, and bigger savings from this month’s debt- ceiling deal are forecast over the next decade.

No one’s celebrating. There will be plenty of red ink for years to come.

The nonpartisan Congressional Budget Office projected Wednesday that annual budget deficits will be reduced by a total of $3.3 trillion over the next decade, largely because of the deficit-reduction package passed by Congress earlier this month. The office also forecast persistently high unemployment, a troubling political prospect for Obama in the crucial months of his campaign to win a second term.

Burger King begins offering oatmeal

PORTLAND, Ore.

Oatmeal is the new burger.

Burger King, the world’s second-largest hamburger chain, added oatmeal to its breakfast menu this week, joining a slew of other chains that have brought the hot cereal out of the cupboard and into restaurants and drive-throughs.

Burger King says it is trying to offer customers a more-healthful breakfast option beyond its sausage croissant sandwiches and french-toast dipping sticks. It’s also an attempt by the struggling chain to catch up to competitors and boost sagging sales by appealing to customers beyond its base of burger-and-fries fans.

Breakfast is becoming the most important meal of the day for restaurants — accounting for nearly 60 percent of traffic growth between 2005 and 2010.

Hertz, GE join in China car deal

SHANGHAI

Rental-car company Hertz Global Holdings and General Electric plan to partner in offering electric vehicles in China and expanding the charging networks needed to run them.

An agreement signed in Shanghai’s “Auto City” of Anting on Wednesday calls for building hundreds of charging stations in major Chinese cities including Shanghai and Beijing, Hertz executives said.

Associated Press