Consumer confidence climbed last month
U.S. consumers were slightly more confident in the economy in May than in April, partly because of strengthening optimism about future hiring and income gains. The Conference Board said that its confidence index rose to 83 from a revised 81.7 in April. That's the second-highest reading since January 2008, just after the Great Recession began. Only March was higher at 83.9. The increase is "enough to suggest decent, but not spectacular, gains in consumers' spending," said Ian Shepherdson, chief economist at Pantheon Macroeconomics, in a note to clients. Confidence has climbed steadily since it bottomed out at 25.3 in February 2009. It sits significantly above last year's average of 72.3. But it still isn't back to healthy levels. The figure regularly topped 90 before the recession.
Orders for durable goods rose in April
Orders to U.S. factories for long-lasting manufactured goods advanced for a third month in April, but much of the strength came from a big surge in demand for military aircraft. Orders in a category that signals business investment plans fell by the largest amount in three months. Orders for durable manufactured goods rose 0.8 percent from the previous month after a 3.6 percent gain in March, the Commerce Department said. The April strength stemmed from a big jump in demand for defense goods including airplanes. Excluding defense, orders would have fallen 0.8 percent in April. Orders for core capital goods, a category viewed as a proxy for business investment plans, fell 1.2 percent in April. It was the weakest showing since a 1.9 percent January drop.
New owners take over Philadelphia Inquirer
Two business moguls who won control of the Philadelphia Inquirer at an insider sale pledged to support serious journalism over so-called clickbait, but they conceded that advertising and circulation gains remain elusive. Lewis Katz and H.F. "Gerry" Lenfest, a former cable magnate-turned-philanthropist, bought out their partners with an $88 million bid for the company, which also operates the Philadelphia Daily News and the news website Philly.com. In 2012, the current ownership group paid $55 million. The winners vowed to fund in-depth journalism to return the Inquirer to its former glory and to retain its editor, William Marimow.
Starbucks expanding its La Boulange chain
Starbucks is dipping its toe into the burger business, with plans to open an outpost of its La Boulange chain that caters to the dinner crowd. A spokeswoman for Starbucks, Linda Mills, said the Los Angeles restaurant will also serve beer, wine, cocktails and milkshakes. Starbucks Corp. had purchased the La Boulange chain of bakery-cafes in 2012. The cafes are based in San Francisco Bay Area and primarily focus on breakfast and lunch with soups, salads and sandwiches, along with baked goods. The location in Los Angeles will be the first outside of the San Francisco area.
Spotify tells Android users to update software
Spotify is requiring people listening to its popular music service on Android devices to install new software as a safeguard against a recent security breach. The break-in so far has only resulted in unauthorized access to one user's account, according to a disclosure posted online by Oskar Stal, Spotify's chief technology officer. He said passwords and financial information were not stolen.
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