U.S. manufacturing expanded slightly

WASHINGTON » U.S. manufacturing grew slightly last month and factory hiring increased. The modest gain suggests the economy entered the new year with some momentum.

The Institute for Supply Management said Wednesday that its index of manufacturing activity rose in December to 50.7. That’s up from a reading of 49.5 in November, which was the lowest reading since July 2009, one month after the recession ended.

A reading above 50 indicates growth, while a reading below signals contraction. The ISM is a trade group of purchasing managers.

Construction spending dips 0.3 percent

WASHINGTON » Spending on U.S. construction projects fell in November from October because a steep drop in volatile federal projects offset another gain in home building.

Construction spending dipped 0.3 percent in November, the Commerce Department said Wednesday. It was the first decline since March and followed a 0.7 percent increase in October, which was revised lower.

Total spending declined to a seasonally adjusted annual rate of $866 billion. That is 16.1 percent above a 12-year low hit in February 2011. Even with the gain, the level of spending remained only about half of what’s considered healthy.

Microsoft renews plea for crackdown

SAN FRANCISCO » Microsoft began the new year harping on a favorite theme: The software maker is arguing that government regulators need to crack down on Google to preserve fair competition in the Internet and smartphone markets.

The latest refrain came Wednesday in a blog post by Dave Heiner, Microsoft’s deputy general counsel. His attack amounted to a last-ditch appeal to the U.S. Federal Trade Commission and the European Commission as they wrap up wide-ranging investigations into Google’s business practices. Resolutions to those probes are expected early this year, perhaps within the next week at the FTC.

Microsoft fears Google, perhaps its biggest nemesis, will emerge from the antitrust probes without being required to make significant changes.

Asian-led group buys stake in ArcelorMittal

» Global steel giant ArcelorMittal will sell a 15 percent stake in one of its Canadian iron ore operations to an Asian-led consortium for $1.1 billion in cash.

In the transaction announced Wednesday, a group led by South Korean steelmaker POSCO and China Steel Corp. will enter into a joint venture partnership that will own ArcelorMittal’s Labrador Trough iron ore mining and infrastructure assets.

The consortium also includes other investors who were not identified in the announcement.

Oil’s third year over $100 a barrel looms

Brent crude is poised to trade above $100 a barrel for a third consecutive year in 2013 as tension in the Middle East threatens to disrupt supply and global demand is buoyed by Chinese imports.

Oil will average $110 in 2013, according to the median of 30 forecasts compiled by Bloomberg News, compared with about $111.70 in 2012. Brent is more likely to overshoot the 2013 median than miss it as Iran spars with the west over its nuclear program and the conflict in Syria deepens, Morgan Stanley and UBS AG said.

"Risks are skewed to the upside, related to still-high risks of escalation or confrontation over Iran and deterioration in Syria," said Julius Walker, global energy markets strategist at UBS Securities LLC in New York, who predicts Brent will average $110 this year. "The biggest possible surprise for markets could be stronger-than-expected oil-demand growth."

Rising prices may pose a barrier to a recovery in the global economy amid Europe’s sovereign debt crisis, U.S. budget disputes and signs of slowing growth in Asia. Record revenue for oil producers helped ensure supply stability this year, encouraging Saudi Arabia to pump at its highest rate in three decades, while financing shale projects in the U.S. that fostered the nation’s biggest production increase in 50 years.

ON THE MOVE

Kaiser Permanente Hawaii has announced the addition of two physicians:

» Dr. Peter Lee is a specialist in critical care medicine and is practicing at Kaiser Permanente’s Moanalua Medical Center. He was previously on staff at Aloha Critical Care Associates as well as an assistant professor of medicine at the University of Hawaii John A. Burns School of Medicine.

» Dr. Steve Yasui is a specialist in family medicine and is practicing at Kaiser Permanente’s Honolulu Clinic. He was previously practicing with Family Medicine Inc. in Wahiawa.

» Kaiser Permanente Hawaii has donated more than $63,000 to support the following three community health initiatives aimed at improving children’s health: Hawaii Appleseed Center for Law & Economic Justice received $30,000; Honolulu Theater for Youth received $20,000; and University of Hawaii, Maui College, received $13,523.63.