Economic Index Falls Again
The index of leading economic indicators fell in October for the fifth straight month, suggesting that the economy may be slowing, a private research group said. The Conference Board said its main indicator of future economic growth fell 0.3 percent in October, following declines of the same size in September and August. The index is calculated by combining factors considered to be good indicators of the economy's direction, such as manufacturing, interest rates, consumer expectations, stock prices and money supply. The Labor Department said that initial jobless claims fell by 3,000 last week, to 334,000. Weekly claims have averaged 344,109 so far this year, compared with 402,000 for all of 2003, a sign businesses are holding on to workers as demand improves, the department said.</br></br>A bankruptcy judge left intact temporary 21 percent pay cuts on some US Airways workers that he imposed last month to help the airline conserve cash and avoid liquidation. Lawyers for the International Association of Machinists and Association of Flight Attendants had asked U.S. Bankruptcy Judge Stephen S. Mitchell to reconsider his ruling, saying the airline had requested steeper pay cuts than were necessary to ensure the airline's survival while in bankruptcy.</br></br>Continental Airlines said it will seek to cut $500 million a year in wages and benefits. The reductions, which would take effect Feb. 28, are in addition to $1.1 billion in cost savings the company has already identified, Continental said.</br></br>Kevin Nordick, accused by prosecutors of bilking $58 million from 15,000 investors in 60 countries, pleaded guilty to federal fraud charges related to the scheme. Investigators called the Tri-West Investment Club one of the nation's largest Internet investment scams. Nordick faces up to 20 years in prison, and sentencing has been scheduled for Feb. 4.</br></br>SBC Communications and Yahoo are expanding their alliance to market delivery of news, entertainment and other services on computers, cell phones, televisions and other devices. Details of the multiyear agreement were not disclosed.