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US service firms grew more slowly in April
- Details
- Published on 05/03/2013 - 9:21 am
- Written by MARCY GORDON, AP Business Writer
The Institute for Supply Management said non-manufacturing activity fell last month in industries such as retail and construction.(AP) — A survey of U.S. service firms says the sector expanded at a slower pace in April than March, as companies reported less business activity and couldn't raise their prices.
The Institute for Supply Management said Friday that its index of non-manufacturing activity fell to 53.1 in April from 54.4 in March. Any reading above 50 indicates expansion.
The report measures growth in industries that cover 90 percent of the work force, including retail, construction, health care and financial services.
The decline in the overall index suggests some service companies may be starting to see less consumer demand, in part because of higher Social Security taxes.
April's weakness was largely because of a steep drop in a measure of prices. That index dropped from 55.9 in March to 51.2 last month. Nearly 70 percent of firms surveyed said they did not change their prices last month, while 10 percent lowered them.
A measure of business activity also declined. Still, a gauge of new orders was mostly unchanged and businesses stepped up restocking, typically a sign that they expect consumer spending to pick up.
Growth in the service industry depends largely on consumers, whose spending drives roughly 70 percent of economic activity. Americans boosted their spending from January through March at the fastest pace in more than two years, despite the increase in Social Security taxes that kicked in on Jan. 1.
But other indicators suggest the tax increase is starting to catch up with consumers. Retail spending fell in March by the most in nine months.
The survey's index of hiring also fell, indicating fewer jobs were added last month. But the survey conflicted with a separate government report Friday that said service-sector hiring improved in April.
The Labor Department said service firms added 185,000 jobs last month, up from 139,000 in March. That helped lower the unemployment rate to a four-year low of 7.5 percent.
The tax increase has lowered incomes for a typical household earning $50,000 by about $1,000 this year. A household with two highly paid workers has up to $4,500 less.
Most economists predict the tax increase and steep government spending cuts that began on March 1 could slow economic growth in the April-June quarter.
Consumers are more optimistic that the job market is healing and will deliver higher pay later this year, according to a survey of April consumer confidence released Tuesday.
And other trends may offset some of the impact of the taxes this year. Consumers have cut their debts. Rising home values and stock prices have increased household wealth And average gas prices nationwide have dropped 27 cents from their peak this year to $3.52 a gallon, according to AAA.
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Latest Local News
Written on 05/23/2013, 1:58 pm by
Valley Commerce Bancorp, parent company of Valley Business Bank in Visalia, announced a cash dividend of six cents per share.
Written on 05/23/2013, 1:40 pm by
Yogurt Etc. will cut the ribbon next to its downtown Fresno location next Thursday.
The startup frozen yogurt store is located at 2311 Kern St., just north of the Fresno Convention Center. The ribbon cutting will begin at 10 a.m.
It will offer dozens of flavor choices and toppings, along with vegan chili and all-beef Hebrew National hot dogs. Sugar-free and fat-free frozen yogurt options are also available.
The owners of the new business are David Goldberg and Hector Parra.
Fresno Mayor Ashley Swearengin and City Councilmember Blong Xiong are scheduled to be in attendance for the ceremony.
Written on 05/23/2013, 11:35 am by
The Small Business Administration is seeking businesses to partake in four classes next month on how to improve their operations and increase bonding capacity.
As part of the classes, businesses will learn how surety or fidelity bonds act as insurance policies showing customers how their work and licenses are guaranteed.
California's Contractors State License Board dictates which construction companies and other professions are bonded to protect customers against possible losses from theft or damage done by employees.
Business owners will also be educated on construction accounting and financial management, estimating and bidding on public works projects, accessing capital, project management and other necessities to obtain or increase their bond lines.
Information on the SBA's Surety Bond Program will also be included in the event.
"Lack of bonding and inadequate bonding capacity are significant challenges to many small business in the San Joaquin Valley," said Carlos G. Mendoza, Fresno SBA district director, in a release. "The government contracting opportunities created by the high-speed rail construction in the Valley will require business to obtain or increase bonding in order to successfully bid on high-speed rail and other transportation projects."
The program is a partnership with the U.S. Department of Transportation, the Southwest Small Business Transportation Center and the Surety & Fidelity Association of America.
Classes will be held on May 30, June 13, 20 and 27 from 4 to 7 p.m. at the Fresno SBA Office located at 801 R St., Suite 201.
Since space is limited, interested business should register as soon as possible by contacting the U.S. Department of Transportation's Small Business Transportation Resource Center at (916) 443-5957 or via email at bonding@calasiancc.org.
A webinar option will be available for businesses outside of the area. General information can be found by contacting the SBA at (559) 487-5791.
Written on 05/23/2013, 11:32 am by
Fresno businesses are invited out to a free lunch on May 28 as Pacific Gas & Electric Co. explains its time-of-use rates now rolling out across the state.
Time-of-use pricing, mandated by the California Public Utilities Commission, requires utilities to charge higher rates during peak hour demands typically spiking in the afternoons.
The new rates, which went into effect last November, will continue to transition away from traditional flat rates in order to keep down demand and ensure greater reliability from the state's energy grid.
Beginning in November 2014, small and medium businesses will automatically transition to peak day pricing, which allows them to avoid additional surcharges by cutting their energy consumption from 2 to 6 p.m.
Representatives from PG&E will share how business can save money through time-of-use rates and peak day pricing during the lunch event, being held from 10 a.m. to 1 p.m. at The Vineyard Farmers Market located at the northwest corner of Shaw and Blackstone avenues in Fresno.
Attendees will also learn about other ways to save through special PG&E programs and rebates, while getting the opportunity to talk with fellow business leaders about their energy issues.
Those interested in attending should register at www.pge.com/timeforbusiness. More information can be found by calling PG&E's customer service hotline at 800-743-5000.
Similar events to educate business about PG&E's time-of-use pricing have taken place throughout the month in cities like Merced, Napa, Pleasanton and Santa Cruz.
Written on 05/23/2013, 9:43 am by
Foreclosure rates continue to fall in Fresno, Madera, Tulare and Kings counties.
Residential areas in all four counties saw a decline for the month of March over the same period last year, according to newly released data from CoreLogic, an Irvine-based property information, analytics and services provider.
The CoreLogic data shows that the rate of Fresno area foreclosures among outstanding mortgage loans was 1.47 percent for the month of March 2013, a decrease of 1.35 percentage points compared to March of 2012 when the rate was 2.82 percent. Foreclosure activity in Fresno was lower than the national foreclosure rate, which was 2.84 percent for March 2013.
Also in Fresno, the mortgage delinquency rate decreased. According to CoreLogic data for March 2013, 5.11 percent of mortgage loans were 90 days or more delinquent compared to 7.05 percent for the same period last year, representing a decrease of 1.94 percentage points.
The rate of Madera-Chowchilla area foreclosures among outstanding mortgage loans was 1.65 percent for the month of March 2013, a decrease of 1.75 percentage points compared to March of 2012 when the rate was 3.40 percent.
Also in Madera-Chowchilla, the mortgage delinquency rate decreased. According to CoreLogic data for March 2013, 5.40 percent of mortgage loans were 90 days or more delinquent compared to 8.10 percent for the same period last year, representing a decrease of 2.70 percentage points.
The rate of Visalia-Porterville area foreclosures among outstanding mortgage loans was 1.57 percent for the month of March 2013, a decrease of 1.23 percentage points compared to March of 2012 when the rate was 2.80 percent.
Also in Visalia-Porterville, the mortgage delinquency rate decreased. According to CoreLogic data for March 2013, 5.06 percent of mortgage loans were 90 days or more delinquent compared to 7.25 percent for the same period last year, representing a decrease of 2.19 percentage points.
The CoreLogic data showed that the rate of Hanford-Corcoran area foreclosures among outstanding mortgage loans was 1.67 percent for the month of March 2013, a decrease of 0.86 percentage points compared to March of 2012 when the rate was 2.53 percent.
Also in Hanford-Corcoran, the mortgage delinquency rate decreased. According to CoreLogic data for March 2013, 5.91 percent of mortgage loans were 90 days or more delinquent compared to 7.21 percent for the same period last year, representing a decrease of 1.30 percentage points.
Written on 05/23/2013, 8:59 am by
(AP) — U.S. Customs and Border Protection officers in Los Angeles have made some unusual seizures, including elephant meat, a dead primate and hundreds of handbags made from the skin of snakes, lizards and crocodiles.
The agency says in a press release Monday that the illegal items were seized between May 6 and May 10 at an international mail facility and at Los Angeles International Airport.
The tiny dead macaque primate from Indonesia had been declared as a gift and was addressed to North Port, Fla.
The elephant meat was from a protected species in Thailand and was bound for Fresno.
The 387 purses were in the baggage of a passenger from Nigeria. They were made from skins of African rock pythons, monitor lizards, dwarf crocodiles, cobras and puff adder snakes.
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Written on 05/22/2013, 1:29 pm by
The Tulare County Sheriff’s Department Agricultural Crimes Unit is investigating the theft of 796 newly planted almond trees from a grove in the area of Avenue 384 and road 172 in Tulare County.
Thieves stole 366 non-pareil, 22 Carmel and 208 wood colony almond trees, a release from the crimes unit reported.
The theft occurred during the evening hours of May 16.
Each of the varieties of trees is marked with blue, yellow or black colored paint, which is on the top portion of the bamboo stake that is attached to each of the trees.
The trees had a cardboard cover, which had the words “Clean Plants” and “Duarte Trees & Vines” on them.
Anyone with information on the location of the stolen trees or the location of newly planted almond groves that the stolen trees may be planted in, is asked to contact Det. T. Shaw or Sgt. J. Dow at the Tulare County Sheriff’s Department Ag Crimes office 559-735-1858 or 24 hours 559-733-6218.
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Written on 05/22/2013, 1:27 pm by
Kaweah Delta Health Care District breaks ground on its 52,000 square-foot Sequoia Medical Center office building on the west side of its Visalia campus on Thursday.
The groundbreaking ceremony begins at 11 a.m. and the building, located at 820 S. Akers St., is expected to be completed by July 1, 2014.
Specialty medical groups such as Orthopaedic Associates Medical Clinic, Inc., South Valley Vascular Associates, Inc., Sequoia Prompt Care (second site), Therapy Specialists, a division of Kaweah Delta Health Care District and Hand Therapy Specialists, a division of Kaweah Delta Health Care District will occupy the building.
State Center Properties is developing the project and the architect is Anthony Pings and Associates and the general contractor is Quiring General, LLC.
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Written on 05/22/2013, 1:24 pm by
Visalia Unified School District is set to break ground on a $4-million project that will fully power 12 school sites.
Working with SolarCity of San Mateo, Calif., the district expects to begin construction in June using funding from its Measure E bond passed in November.
Most of the panels will be installed on top of shade structures over parking lots and play areas for a combined energy generating capacity of almost 2.5 megawatts.
Producing around 3.4 million kilowatt-hours of electricity, the project is estimated to save the district more than $700,000 on energy costs during the first year of operation and $15 million of electricity over the next 25 years.
The panels are also expected to result in an annual reduction of more than 2.6 million gallons of water that would have been used to cool traditional power plants.
Helping recoup some of the cost, Southern California Edison will pay the district more than $2.3 million in rebates for the electricity over the next five years.
According to the Visalia Unified School District, the $60 million from Measure E has the potential to bring $120 million when combined with anticipated state matching funds.
The first series of Measure E bonds was issued in April, generating $33.99 million for projects ranging from new construction to paint and roofing district-wide.
Visalia Unified is among many schools throughout the San Joaquin Valley turning to solar energy to save money.
Earlier this month, the Clovis Unified School District broke ground on the first phase of its 5.9-megawatt solar project that will install photovoltaic panels at 19 school sites to save the district $2.7 million annually on energy costs.
Last June, Cupertino Electric finished up a project that put solar systems totaling 1.12 megawatts on several schools in the Golden Valley School District in Madera, saving up to $9 million over the next 25 years.
The Porterville Unified School District will be able to save $44 million over the same time period thanks to solar panels totaling 3.7 megawatts installed by San Jose-based SunPower at six of its school sites.
The Firebaugh-Las Deltas Unified School District also expects to save $9 million through solar panels installed last year at three of its five schools, while the Selma Unified School District is completing a $13.5-million solar energy project at eight campuses to save $34 million over 25 years.
Fresno Unified School District has solar panels installed at Roosevelt High School and also plans to install some on top of its new 27-classroom building at Edison High.
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