Consumer confidence falls sharplyConsumer confidence experienced its biggest decline in more than a year, falling sharply in March because of growing concerns about rising prices and stagnant incomes, according to a survey released Tuesday. The nonprofit Conference Board said its consumer-confidence index dropped to 63.4 in March from a revised 72.0 in February, marking the biggest one-month decline since February 2010. The index had risen five straight months until backtracking in March. Economists polled by MarketWatch had expected the index to decrease to 62.2 from February's initially reported level of 70.4. The decline mirrors the results of several other surveys of consumer optimism, including Gallup and Reuters/University of Michigan. The slow pace of hiring, meager wage increases and rising prices of gas and food are the biggest concerns of consumers. Americans grew more pessimistic about the jobs market in March and fewer people expect their incomes to rise. Economists say the disaster in Japan and turmoil in the Mideast also likely contributed to a pessimistic mood.
Toys 'R' Us settlement: $1.3 millionToys 'R' Us Inc. will pay $1.3 million to settle Federal Trade Commission allegations that it violated a 1998 agency order that barred the company from pressuring suppliers to limit the distribution of products to discount retailers. The FTC's original case against Toys 'R' Us dates to 1996. The agency issued the 1998 order after finding that the company had used its dominant position as a toy retailer to extract agreements from manufacturers to stop selling the same toys to warehouse clubs such as Costco Inc., Wal-Mart Stores Inc.'s Sam's Club and BJ's Wholesale Club.
UAW leader is flexible on pay scaleThe United Automobile Workers union might allow carmakers to put more new workers on a lower wage scale in order to create more jobs and reopen idled plants, a UAW official said Tuesday. Joe Ashton, a vice president in charge of the UAW's dealings with General Motors, said creating jobs is a priority for the union entering this fall's negotiations with the three Detroit carmakers. He said the union will ask GM to reopen plants in Spring Hill, Tenn., and Janesville, Wis., and to keep operating a plant in Shreveport, La., that is scheduled to close in mid-2012. He said the Spring Hill and Janesville plants, which GM placed on "standby" status as part of its bankruptcy reorganization in case more production capacity were to be needed in the future, have a "great" chance at being revived but that he is "not so sure" about Shreveport's prospects. GM's vice president for labor relations, Cathy Clegg, said the company would reopen the two standby plants if needed but that it already has enough capacity to meet current demand.
FROM NEWS SERVICES
