Americans cut spending as economy lags

WASHINGTON » Americans cut their spending in June for the first time in nearly two years after seeing their incomes grow by the smallest amount in nine months. The latest data offered a troubling sign for an economy that is adding few jobs and barely growing.

Consumer spending dropped 0.2 percent in June, the Commerce Department said Tuesday. It was the first decline since September 2009.

Some of the decline was the result of food and energy prices moderating after sharp increases earlier this year. Still, consumers cut back on big-ticket items, such as cars and appliances, which help drive growth.

Incomes rose 0.1 percent, the smallest gain since September. Many people are also pocketing more of their paychecks. The personal savings rate rose to 5.4 percent of after-tax incomes, the highest level since August 2010.

Pfizer net up 5% on lower charges, taxes

Generic competition cut deeper into drugmaker Pfizer Inc.’s sales in the second quarter — with the U.S. patent expiration for its cholesterol fighter Lipitor, the world’s top-selling drug, just five months away.

The world’s biggest drugmaker eked out a 5 percent profit increase, thanks to lower taxes and reduced restructuring charges from its 2009 purchase of Wyeth. But its

underlying profit, excluding one-time items, declined 4 percent from a year ago, to $4.73 billion, or 60 cents a share. Analysts surveyed by FactSet were expecting 59 cents.

FAA shutdown lingers as Congress leaves

WASHINGTON » A partisan stalemate that has partially shut down the Federal Aviation Administration will continue into September, stopping airport construction projects and depriving federal coffers of potentially more than $1 billion in uncollected ticket taxes, after congressional attempts to reach a deal fell through on Tuesday.

The FAA’s operating authority expired on July 23, as well as the authority of airlines to collect about $30 million a day in ticket taxes, meaning the government will be unable to collect an estimated $1.2 billion in taxes if the shutdown continues until lawmakers return to work next month.

Nearly 4,000 FAA employees have been laid off and stop-work orders issued for more than 200 construction projects.

Air traffic controllers have remained on the job, and Transportation Secretary Ray LaHood has vowed that safety will not be compromised and travelers will not be inconvenienced.

Saudi Arabia eyes world’s tallest tower

CAIRO » Saudi Arabia took a key step forward Tuesday in its plan to build the world’s tallest tower and outdo Persian Gulf neighbor Dubai, which inaugurated its own record-breaking skyscraper less than two years ago.

The Saudis awarded a contract for more than $1 billion for a spire that will soar two-thirds of a mile high, to be named the Kingdom Tower.

It will have a Four Seasons hotel, serviced apartments, luxury condominiums and offices, encompassing, in all, about 5.4 million square feet.

The plans make Saudi Arabia a front-runner in the race between the oil-rich Persian Gulf nations for glitzy, architectural trophies that dot their desert territories with glimmering skyscrapers and elaborate, man-made islands.

The projects are seen as status symbols to show off both economic success and cultural sophistication.

Kingdom Holding Co., the investment firm headed by billionaire Prince Alwaleed bin Talal, said it signed a $1.2 billion deal with the Saudi Binladen Group to build Kingdom Tower on the outskirts of the Red Sea city of Jiddah.

Strong yen could spur currency intervention

TOKYO » Expectations that Japan will intervene in currency markets grew Tuesday as the yen’s rise to a near record high threatened to stall economic recovery in the aftermath of the March earthquake.

The dollar, weakened by the dimming U.S. economic outlook, fell as low as 76.29 yen Monday. It hit a record post-World War II low of 76.25 yen in the days following the March 11 earthquake and tsunami.

Although the dollar climbed back above the 77-yen level Tuesday, officials intensified their rhetoric, and analysts predicted action by the central bank and finance ministry as early as this week.

Japanese Finance Minister Yoshihiko Noda acknowledged that Japanese companies “will suffer” if the yen is not tamed.

“The yen is strongly overvalued and continues to show one-sided moves,” he told reporters Tuesday.

ON THE MOVE

The Chamber of Commerce of Hawaii has named Sherry Menor-McNamara as chief operating officer and senior vice president of business advocacy and government affairs from vice president of business advocacy and government affairs.

The Hawaii Medical Service Association and Healthways Hawaii have announced that Dr. John Baleix will serve as a joint medical director. He will be responsible for HMSA’s patient-centered medical home initiative.

Maui Divers Jewelry has promoted Lori Okawa-Alvarez to vice president of human resources. She is responsible for employee relations, safety and health, organizational development and employment.