Economy Picking Up, Fed Says
The U.S. economy showed signs of faster growth in the past six weeks, including an increase in manufacturing, the Federal Reserve said in its survey of regional economies. Most of the Fed's 12 districts that were surveyed suggested stronger growth in their regions. "Consistent with the generally more positive assessments of current economic activity, several districts noted increased optimism about economic prospects in coming months," the report said. Three districts -- Chicago, St. Louis and San Francisco -- characterized economic activity as sluggish. Atlanta described business conditions as mixed. The Fed's report said that housing sales remained strong across various districts, helped by low mortgage rates.</br></br>Pillowtex -- maker of Cannon, Fieldcrest and Royal Velvet towels, bed linens and other home furnishings -- closed its 16 plants, eliminated 6,450 jobs and filed for Chapter 11 protection from creditors. The company said it planned to wind down its business and dispose of its assets. Pillowtex had tried to find a buyer as a big debt-repayment deadline approached.</br></br>Equifax agreed to pay $250,000 to resolve allegations that it did not do enough to answer calls from consumers inquiring about their credit reports. The Federal Trade Commission had accused the company of violating an earlier settlement with the agency that imposed performance standards. In settling, the company did not acknowledge breaking any law.</br></br>Impath, a New York company that analyzes cancer tests for doctors, said it is investigating whether it improperly overstated money owed by customers and may report a loss this year. It said it will hire an independent lawyer and a forensic accountant to help with the investigation. It also said its vice president of finance and controller have resigned, but it declined to identify them; three other top executives have left in a little more than a year.</br></br>Canada's economy expanded 0.1 percent in May. Car sales were good. Gross domestic product, or the total value of goods and services produced, rose to an annualized $712.6 billion, Statistics Canada said in Ottawa. A drop in manufacturing tempered gains and signaled that the economy hasn't fully recovered from a 0.2 percent contraction in April.