Spending increase is aiding economy

Spending increase is aiding economy

WASHINGTON

The economic recovery is now consistently picking up speed, and American consumers are the ones pushing the gas pedal. They increased their spending late last year at the fastest pace since 2006.

The question now is whether they can spend enough this year to make the economy grow even faster and finally bring down unemployment. It’s up to them because the housing market and government spending aren’t offering much help.

A more-active consumer was the main reason the economy grew at an annual rate of 3.2 percent in the final three months of 2010, the Commerce Department said Friday. It was up from 2.6 percent the previous quarter and the best since the start of last year.

Workers saw 2% rise in wages in ’10

WASHINGTON

Workers saw their wages and benefits rise slightly faster in 2010 than 2009, but the gain was still the second-lowest increase in nearly three decades.

Wages and benefits increased 2 percent last year after a 1.4 percent increase in 2009, the Labor Department reported Friday. Both years were the smallest gains on Labor Department records that go back 28 years.

World leaders tout trade deal

DAVOS, Switzerland

German Chancellor Angela Merkel and British Prime Minister David Cameron swung their weight behind calls to clinch a global trade deal Friday, citing it as a key test for the international community’s ability to cooperate in reviving the world economy.

Both leaders warned that failure to conclude the so-called Doha round of trade talks risks setting back efforts to liberalize global commerce by years, if not decades.

Their call came on the eve of a meeting of commerce ministers in Davos, Switzerland, timed to coincide with the World Economic Forum at which business and political leaders mingle each year to discuss the state of the planet.

Candy maker recalls Nuclear Sludge bars

WASHINGTON

The U.S. government says candy imported from Pakistan called Toxic Waste Nuclear Sludge is not safe to eat. Who would have guessed?

The Food and Drug Administration announced that the U.S. distributor of Nuclear Sludge chew bars is recalling the candy because of lead contamination. No one has been sickened, but the FDA said elevated lead content could be harmful to small children, infants and pregnant women.

The candies were manufactured in Pakistan. Indianapolis-based Candy Dynamics said it would stop selling all Nuclear Sludge candy in the U.S. The candy is wrapped in bright yellow cautionlike tape, and the company’s website features the screech of a blaring warning horn. The bars were distributed in stores throughout the U.S. and Canada.

Associated Press