Construction spending declines in October

Rocky Mountain News

Published December 2, 2008 at 12:05 a.m.

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Construction spending fell by a larger-than-expected amount in October, another indication that problems facing the builders of homes, hotels and other projects are deepening and likely to persist.

The Commerce Department reported Monday that construction spending dropped by 1.2 percent in October, more than the 0.9 percent decline many analysts expected.

The construction weakness was led by another sizable drop in home building, which has fallen every month but two over the past 21/2 years. Nonresidential building also weakened as developers face tougher times getting financing because the banking system is going through a severe credit squeeze.

* A measure of U.S. manufacturing activity fell to a 26-year low in November as new orders dropped for the 12th consecutive month, a trade group said Monday.

The Institute for Supply Management's monthly index of manufacturing activity fell to 36.2 from October's 38.9. The reading is worse than Wall Street economists' expectations of 38.4, according to a survey by Thomson Reuters. A figure below 50 indicates the sector is contracting.

The November reading is the lowest since May 1982, the ISM said, when the economy was in a recession.

* Global chip sales fell 2.4 percent in October from a year ago as prices declined for chips used in digital cameras, cell phones and music players amid the worldwide financial crisis.

The Semiconductor Industry Association said Monday that the impact is expected to be felt into next year.

Chip sales dropped to $22.5 billion in October from $23 billion a year earlier. Sales for the month were 2.1 percent lower than the $23 billion in September, the SIA said.

Excluding memory, sales rose 3.8 percent from a year ago.

NATIONAL

Pelosi vows to have economic bill ready by inauguration day

House Speaker Nancy Pelosi is promising Congress will try to have a huge economic recovery bill ready for President-elect Barack Obama as soon as he takes office.

The California Democrat said Monday that lawmakers will press ahead in hopes the bill will be ready for Obama's signature when he takes office on Jan. 20.

The measure could total $500 billion for infrastructure, aid to states with their Medicaid costs and renewable energy development.

Congress convenes Jan. 6, which would give lawmakers just two weeks to complete the bill if it is to be signed right away.

FORD RETHINKS VOLVO Ford Motor Co. is considering selling Volvo Car Corp. as the struggling U.S. automaker seeks to raise cash and weather a global automotive sales crisis.

Ford said Monday it expects its strategic review of the Swedish luxury automaker will take several months.

Despite its high safety ratings, which makes it a popular, high-end family vehicle, Volvo captured 0.5 percent of the market through October, compared with 0.8 percent a year earlier. That accounts for 3.7 percent of Ford's total sales this year.

CHICKEN PRODUCER FILES FOR BANKRUPTCY Pilgrim's Pride Corp., the nation's largest chicken producer, filed for Chapter 11 bankruptcy protection on Monday, hobbled by its debt load and volatile feed prices.

The Pittsburg, Texas-based company sought bankruptcy protection in a filing with the U.S. Bankruptcy Court for the Northern District of Texas, saying that as of Sept. 27 it had $3.75 billion in assets and $2.72 billion in debts.

Pilgrim's Pride spokesman Ray Atkinson said the company was reorganizing and not liquidating its assets, and that it will keep operating throughout the reorganization process.

PORTLAND LANDS VESTAS HQ Danish wind company Vestas on Monday said it will build new headquarters for Vestas Americas in Portland, Ore.

Vestas Americas is responsible for wind turbine sales, installation, and service and maintenance in North America.

A subsidiary Vestas Technology R&D Americas announced the opening of a new research and development hub in metro Boston to develop generators, converters and technologies for wind turbines in cooperation with Vestas technology centers in Houston, Asia, India and Europe.

The company also is building several manufacturing facilities in Colorado, including Windsor, Brighton and Pueblo.

LOCAL

DIA's food, recycling cited in healthiest airports ranking

Health magazine has named Denver International Airport one of the healthiest airports in the country for its "commitment to the environment and energy efficiency."

In its December edition, the publication ranks DIA as the fifth-healthiest airport in the nation, pointing to its recent project to install thousands of solar panels, its system of recycling the glycol used in de-icing operations, and its array of healthy food options for passengers.

BOULDER FACILITY OPEN Covidien Energy-based Devices on Wednesday will officially open an expansion to its Boulder campus.

Covidien's Energy-based Devices was formerly Valleylab before it was spun off from Tyco International last year.

The unit added 290 personnel this year, including 150 newly created positions.

THIS JUST IN

* The Public Relations Society of America Colorado Chapter named its 2009 board of directors: Gina Seamans, president; Elisabeth Mognahan, president-elect; Jill Preston, secretary; Julie Scott, treasurer; Amy Johnson, past president; Beau Ballinger, Sarah Rasmussen, Cara Taylor, Kristy Bassuener, Bill Green and Jacque Matsen, directors; and Dawn Doty, Meredith Bagnulo, Cherie Orwig, Kim McCarl and GG Johnston, assembly delegates.

* The University of Colorado appointed Kelly Fox interim vice president for budget and finance.

* Weise Communications received five 2008 Colorado Healthcare Communicators awards including Colorado Hospital Project of the Year Award, Gold Leaf Awards for Advertising, Gold Leaf Award for Media Relations, Silver Leaf Award for Annual Report Over $10,000 and Bronze Leaf Award for Advertising.

* Peggy Hermann joined the Jewish Women's Fund of Colorado as executive director.

* The Robert Wood Johnson Foundation named Richard Krugman, dean of the University of Colorado School of Medicine, to chair its Clinical Scholars Program National Advisory Committee.

* Saudi Arabia honored Chih Ted Yang, a civil engineering professor at Colorado State University, with the Prince Sultan Bin Abdulaziz International Prize for Water, an international prize for water engineering.

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