WASHINGTON >> The U.S. economy expanded at a slightly faster pace in the spring than previously reported, aided by newfound strength in business construction.
The Commerce Department said Thursday the gross domestic product, the broadest measure of the economy, expanded at an annual pace of 1.4 percent in the April-June quarter. That is up from a previous estimate of 1.1 percent growth. Much of the upward revision reflected an increase in spending on structures such as office buildings.
The modest second-quarter gain followed weaker readings of 0.8 percent GDP growth in the first quarter and 0.9 percent in the final three months of last year.
OPEC deal shows resolve, desperation
ALGIERS, Algeria >> OPEC’s unexpected agreement to trim production shows the cartel still has the resolve — and even desperation — to try to guide oil prices higher. But don’t expect triple-digit crude anytime soon.
Ministers from the oil cartel reached a preliminary deal Wednesday to cut production for the first time since the global financial crisis eight years ago. The reduction was modest — to between 32.5 million and 33 million barrels per day from just below current levels of around 33.2 million. Still, the decision came as something of a surprise and sent oil prices up 5 percent Wednesday and an additional 78 cents, or 1.7 percent, to $47.83 a barrel on Thursday. The deal won’t be finalized until November.
Jobless aid applications inch up to 254,000
WASHINGTON >> More Americans sought unemployment benefits last week but the number of applications remained low, the latest sign that layoffs are scarce.
The Labor Department said Thursday that weekly applications for jobless aid rose 3,000 to a seasonally adjusted 254,000. The four-week average, a less volatile measure, ticked down to 256,000, matching a 43-year low first reached in April.
The number of people receiving aid dropped 46,000 to 2.1 million, the smallest number since July, 2000. Even in a healthy economy some people lose jobs as companies restructure.
Pending home sales slumped in August
WASHINGTON >> Fewer Americans signed contracts to buy homes in August, as a shortage of properties for sale is weighing on the market.
The National Association of Realtors said Thursday its seasonally adjusted pending home sales index fell 2.4 percent last month to 108.5, its lowest reading since January. The number of signed contracts slumped sharply in the South, the nation’s largest housing market. But pending sales improved in the Northeast, Midwest and West.
Home purchases and prices have risen much of this year but a slowdown surfaced in August as a lack of inventory has hurt the market.
PepsiCo’s North America sales lift profit
PURCHASE, N.Y. >> PepsiCo sold more of its beverages and Frito-Lay snacks in North America during the third quarter, helping it deliver a profit that beat Wall Street expectations.
The food and beverage company also raised its full-year earnings forecast.
PepsiCo earned $1.99 billion, or $1.37 a share, for its most recent quarter. After excluding the impact of one-time costs and restructuring changes, it said it earned $1.40 a share. Revenue declined to $16.03 billion from $16.33 billion, hurt by foreign currency exchange translation and the Venezuela deconsolidation.
Volvo recalls 127K vehicles over AC leaks
DETROIT >> Volvo is recalling about 127,000 cars and SUVs worldwide because the air conditioning can leak water into the vehicles and cause air bags to malfunction.
The recall covers 2016 and 2017 XC90 SUVs, S90 sedans and V90 wagons. Volvo says in documents filed with U.S. safety regulators that a drain hose may have been installed incorrectly at the factory.
The moisture may stop the air bags from deploying in a crash and may affect the engine management system. Volvo discovered the problem after getting reports from the field.
ON THE MOVE
Honolulu law firm Chun Kerr has announced the following:
>> Effie A. Steiger has been hired as a senior associate and will be serving the commercial and real estate litigation team. She was previously a counsel for civil cases at the Law Office of Philip R. Brown in Honolulu, which involved personal injury, real estate, constitutional rights and business and contract disputes.
>> Kevin Naud Jr. is an associate and will practice in the firm’s business transactions area. He was previously a law clerk for Judge Lisa M. in the Hawaii Intermediate Court of Appeals since 2013.
Hawaii ADU, creator and builder of Ohana Kit modular ADU and Home Addition System, has announced that Jeremy Pearl is the chief executive officer and co-founder. Prior to joining the company in January of 2016, Pearl served as a sales leader with SolarCity and rose through the ranks of the company’s main office located in Foster City, Calif., for more than six years. Since then, Pearl also represented solar partners in more than 10 regions, including Guam, Hawaii and Saipan.
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