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A decline in factory production in October signals that consumers and businesses remain cautious in their spending, with the economic recovery likely to be sluggish.
At the same time, the weak economy is taming inflation. Wholesale prices rose less than expected last month, giving the Federal Reserve more leeway to keep interest rates low to try to spur a stronger economic rebound.
Industrial production edged up 0.1 percent last month, the Fed reported Tuesday. It was the poorest showing since output fell 0.4 percent in June. Since then, industrial output had posted strong gains, helped by a rebound in auto production.
General Electric Co. said Tuesday it is forming joint ventures with major Chinese groups that operate aerospace, energy and rail businesses.
GE, which runs 36 wholly owned or joint venture companies in China, did not disclose the value of the deals.
“These agreements share common themes – rapid growth potential, clean technologies and job creation,” General Electric Co. head Jeff Immelt said.
GE Aviation and AVIC Systems will create a global avionics business, based in Beijing, to develop and market products for commercial aircraft customers.
GE Transportation will form a joint venture with CSR Qishuyan Locomotive Co. Ltd., a unit of China South Locomotive and Rolling Stock Corp. Ltd., to make locomotive diesel engines in China.
GE Transportation and China’s Ministry of Railways also signed a memorandum of understanding to jointly pursue “partnership opportunities to pursue high-speed rail projects” in the U.S.
Home Depot, the largest home-improvement retailer, says its third-quarter earnings fell 8.9 percent as the housing and renovation markets remained weak.
Home Depot says its net income was $689 million, or 41 cents per share, for the quarter ended Nov. 1.
Revenue fell 8 percent to $16.36 billion. Analysts expected a profit of 36 cents per share on revenue of $16.27 billion.
Sales at stores open at least a year, a key measurement for retailers, fell 6.9 percent.
Target’s profit climbed more than 18 percent up in the third quarter as the discount department store chain cut costs and amped up its fight with rival Wal-Mart Stores Inc.
Target Corp. has been fighting with its larger competitor as recession-battered customers switch to cheaper stores and swap splurging for saving.
For the quarter ending Oct. 31, costs that rose more slowly than revenue helped profit jump to $436 million, or 58 cents per share. Sales grew 1.4 percent to $14.8 billion. Overall revenue was $15.27 billion. That’s up 1 percent.
The largest union for Verizon Communications Inc. workers said the company is laying off more than 1,000 employees in Washington, D.C.; Maryland and Virginia.
Verizon spokesman Alberto Canal said the layoffs are part of the already announced plan to cut 8,000 jobs this year.
