Current Events in August 2015

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    No injuries in the latest Jumpin' Jeep escapade

    Not all the incidents of apparent unintended acceleration have ended so luckily

    FCA US LLC -- a/k/a Chrysler -- fervently denies its older Jeep Grand Cherokees are prone to unpredictable bouts of sudden acceleration but car wash owners are unconvinced.

    There've been numerous incidents in which the jumpin' Jeeps were said to have gone crashing out of car washes, leading many car wash owners to ban the SUVs entirely or require special safety measures when they're on the premises.

    Such is the case at the Lucky Drive Brushless Car Wash in Greenbrae, California. The rules there state that an employee must stay in the car when a Cherokee is being spiffed up.

    But that didn't do much good last Saturday when a 1999 Cherokee suddenly took off, darting onto busy Highway 101, crashing through a bus shelter, crossing five lanes of northbound traffic, slamming through a center guardrail and ramming through two lanes of southbound traffic before it finally stopped without hitting any other cars.

    On board was a terrified Juan DeLeon, 52, of San Rafael, the car wash worker who'd been assigned to babysit the Jeep and keep it out of trouble. 

    Tried to stop

    DeLeon said he tried to apply the brakes but the Cherokee just kept on going. California Highway Patrol Officer Andrew Barclay said DeLeon had no apparent health issues and found no immediate indication of what caused the incident. The CHP took the Jeep into custody for inspection.

    It's the latest in a series of incidents involving older Jeep Cherokees. Some have had tragic consequences. In October 2013, a 15-year-old girl was killed in Yonkers, N.Y., when a 2000 Grand Cherokee plowed into a crowd attending a street fair. A police report attributed the accident to brake failure rather than unintended acceleration, USA Today reported.

    In 2006, a Connecticut man was killed when a Grand Cherokee suddenly accelerated at a car wash. In both cases, the Jeeps took off seconds after they were started and shifted into gear.

    Scene of the latest jumpin' Jeep episode FCA US LLC -- a/k/a Chrysler -- fervently denies its older Jeep Grand Cherokees are prone to unpredictable bo...

    Housing market sends mixed signals in July

    Realtor.com sees strongest action at the low end

    The conventional wisdom is that the housing market has turned a pretty significant corner with an influx of first-time buyers hoping to transition from being renters to homeowners.

    That's helped prices, but mostly on the low-end, with buyers competing for limited inventory. Unfortunately, the owners currently occupying those entry-level houses don't appear in any hurry to move up.

    Despite the mixed signals, Jonathan Smoke, chief economist at Realtor.com says the residential real estate market looked healthy in July.

    July trends

    He points to his company's Advance Read of July Trends, showing the national median list price increasing to $234,000, up 7% year-over-year and 1% over June. But houses aren't selling quite as fast as they were. Median days on market increased to 69 days - not bad when compared to last July, but still a 5% slowdown from June.

    “It’s typical to see a slackening in the pace of market activity during this time of year, due to back to school and the dog days of summer,” Smoke said. “Increasing median days-on-market suggests the market is finding more of a balance, but demand is still strong. This bodes well for more moderate price appreciation in the months ahead.”

    Recent market data hasn't provided any clear direction. Existing home sales were up in June but new home sales suffered a 6.8% decline from May. Pending home sales, a leading indicator of market activity, were down nearly 2% month-over-month but up 8% year-over-year. Despite that, Smokes says he has seen nothing to cause him concern.

    “We have reviewed the data and taking into account less than perfect seasonal adjustment techniques at a very seasonal time for housing and the differing baseline metrics used in the various indicators, we’re comfortable that the market remains strong despite of these recent mixed signals,” stated Smoke.

    Yuba City heats up

    Smoke's key takeaways from the report include continued strength in California's housing markets. He singles out the Yuba City market as a pleasant surprise, making it into Realtor.com's Top 20 housing markets for the first time. It's strong showing is largely attributed to its significant inventory of entry-level housing, in demand by first-time buyers.

    “The city stands out with one attribute most of California lacks —affordability,” Smoke said.

    According to data compiled by Realtor.com, it is the fifth-least expensive market out of California’s 23 metros analyzed, with a strong supply of affordable housing.

    Despite the domestic oil industry getting slammed, Texas also remains a strong housing market with fou of the country's most-searched metros, according to Realtor.com data. Midland continued to gain strength, rising 10 spots to number 7 from June to July, and up from number 34 in May.

    Part of that, however, may be linked to bargain hunting. Because of the suffering of the oil industry, Smoke says the median list price of Midland residential real estate was headed lower in July.

    The market’s sudden rise could be fueled by sellers becoming eager to move inventory, leading to a faster-moving market, Smoke said.

    The conventional wisdom is that the housing market has turned a pretty significant corner with an influx of first-time buyers hoping to transition from bei...

    Gas prices at lowest point since 2009

    Refineries back on line, crude oil still cheap. It adds up to a bargain for consumers

    It doesn't get much cheaper than this. American drivers are paying the lowest average price for gas for this date since 2009. The current national average of $2.65 per gallon is a savings of 85 cents per gallon from this date a year ago, AAA reports.

    The resolution of local refinery issues and lower prices for crude oil are keeping downward pressure on gas prices, although volatility continues to characterize several regional markets due to unexpected drawdowns in supply, AAA analysts say.

    While some states may not experience significant price drops as a result of regional supply and distribution issues, the national average is expected to keep moving lower leading up to the Labor Day holiday, barring any unexpected spikes in the price of global crude oil or unexpected disruptions to domestic production.

    Keep in mind that all prices quoted are average. Actual prices will vary depending on location, time and local market factors. Drivers who don't like the price at one service station should check others in the area. Online sites like GasBuddy offer local comparison shopping.

    Higher in the West

    Pump prices west of the Rockies remain the most expensive in the nation and all seven states with averages above $3 per gallon are located in this region. Drivers in California ($3.74) are paying the nation’s highest averages for retail gasoline and are followed by Alaska ($3.48), Hawaii ($3.28), Nevada ($3.24) and Washington ($3.17) as top five most expensive markets for motorists.

    Although prices on the West Coast appear to be easing, retail averages remain volatile based on shifts in supply and demand. Alabama ($2.266) is the nation’s least expensive market, unseating South Carolina ($2.269) by fractions of a penny.

    With the exception of Indiana (+2 cents) and Alaska (+1 cents), pump prices are down in every state and Washington, D.C. over the past week. The largest discounts in price are seen in Ohio (-14 cents), Kansas (-11 cents) and Minnesota (-11 cents), while consumers in 24 states and Washington, D.C. are enjoying weekly saving of a nickel or more per gallon.

    It doesn't get much cheaper than this. American drivers are paying the lowest average price for gas for this date since 2009. The current national average ...

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      It's becoming more affordable to rent than buy

      RealtyTrac finds rising home prices tipping the balance toward renting

      With historically low interest rates and affordable home prices, matched by skyrocketing rents, many consumers have discovered they could save money by purchasing a home rather than renting.

      That may still be true in many markets, but RealtyTrac, a real estate marketing service, says that appears to be shifting.

      The company constantly analyzes 285 U.S. counties to compare the buy vs. rent equation. In recent months, it says the balance is clearly shifting away from buying and toward renting as home prices rise faster than rents.

      That's a change from 2012, when 65% of the population lived in counties where it was more affordable to buy than rent. That fell to 58% in favor of owning in 2013, 56% in 2014 and 54% this year.

      For example, in the Denver area, the percent of median income needed to buy a home is 25.8%, but a consumer would spend 31.4% of his or her median income to rent. The San Francisco Bay Area is more affordable for renters than buyers. The same is true in Arlington County, Va., in suburban Washington, DC.

      But in Marietta, Ga., in suburban Atlanta, buying a home is still twice as affordable as renting it, according to RealtyTrac.

      Back to bubble levels

      While rents are still rising nationwide, home prices are rising even faster in some markets. When the National Association of Realtor's reported June's existing home sales, it noted that the median existing-home price for all housing types was $236,400. Not only is that a 6.5% increase over June 2014, it's even higher than the peak median sales price set in July 2006, at the height of the housing bubble.

      "Buyers have come back in force, leading to the strongest past two months in sales since early 2007," said Lawrence Yun, NAR's chief economist. "This wave of demand is being fueled by a year-plus of steady job growth and an improving economy that's giving more households the financial wherewithal and incentive to buy."

      Fewer homes to buy

      Unfortunately, there are fewer homes to buy. According to residential real estate site Zillow, inventory fell in June for the fifth straight month, giving sellers the ability to hold out for a higher asking price. According to Zillow, the biggest decline in inventory came in entry-level housing, the homes usually sought by first time buyers.

      The total number of homes listed for sale on Zillow in June was down 6.5% year-over-year but was up 2.1% on a monthly basis. Not surprisingly, the hot real estate markets drew the most sellers, with inventories posting double-digit increases in Austin, Atlanta, and Washington, DC.

      But with available homes shrinking in many markets, more consumers may have to remain renters for a while. And according to RealtyTrac's numbers, that might not be such a bad thing.

      With historically low interest rates and affordable home prices, matched by skyrocketing rents, many consumers have discovered they could save money by pur...

      Home prices post 40th consecutive monthly gain

      CoreLogic reports a 6.5% year-over-year advance in June

      Home prices continued to rise in June on both a year-over-year and month-over-month basis.

      CoreLogic reports its Home Price Index (HPI), which track home prices nationwide shows sales -- including distressed sales -- rose by 6.5% in June from the same month a year earlier. That marks 40 consecutive months of year-over-year increases in home prices nationally.

      Distressed sales include short sales and real estate-owned (REO) transactions.

      On a month-over-month basis, home prices -- including distressed sales -- rose 1.7% from May's level.

      New peaks reached

      Including distressed sales, 35 states and the District of Columbia were at or within 10% of their peak prices in June. Fifteen states -- Alaska, Arkansas, Colorado, Hawaii, Iowa, Kentucky, Nebraska, New York, North Carolina, North Dakota, Oklahoma, South Dakota, Tennessee, Texas and Wyoming -- and D.C. reached new price peaks.

      Excluding distressed sales, home prices posted a year-over-year gain of 6.4% , and increased by 1.4% month-over-month. Excluding distressed sales, only Massachusetts (-1.5%) and Louisiana (-0.1%) showed year-over-year depreciation in June.

      “The tightness of the for-sale inventory varies across cities. Throughout the U.S., the months’ supply was 4.8 months in the CoreLogic home-listing data for June, but varied greatly across cities. In San Jose and Denver, there was only 1.6 months’ supply of homes on the market, whereas Philadelphia had a 7 months’ supply and Providence had a 6.6 months’ supply,” said Frank Nothaft, chief economist for CoreLogic. “The stronger appreciation was registered in cities with limited inventory and strong homebuyer activity, such as San Jose and Denver.”

      Report highlights

      • Including distressed sales, the 5 states with the highest home price appreciation were: Colorado (+9.8%), Washington (+8.9%), New York (+8.3%), South Carolina (+8%) and Nevada (+8%).
      • Excluding distressed sales, the 5 states with the highest home price appreciation were: Colorado (+9.3%), New York (+8.5%), Washington (+8.3%), Oregon (+8.2%) and Nevada (+7.9%).
      • Including distressed sales, only 4 states experienced home price depreciation: Massachusetts (-5%), Connecticut (-0.6%), Louisiana (-0.4%) and Mississippi (-0.3%).
      • Including distressed transactions, the peak-to-current change in the national HPI (from April 2006 to June 2015) was -7.4%. Excluding distressed transactions, the peak-to-current change for the same period was -4%.
      • The 5 states with the largest peak-to-current declines, including distressed transactions, were: Nevada (-32.2%), Florida (-28.7%), Rhode Island (-26.5%), Arizona (-25.8%) and Maryland (-21.2%).
      • Of the top 100 Core Based Statistical Areas (CBSAs) measured by population, 93 showed year-over-year increases. The seven CBSAs that showed year-over-year declines were: Baltimore-Columbia-Towson, Md. (-8%); Boston, Mass. (-4.4%); Camden, N.J. (-0.5%); Hartford-West Hartford-East Hartford, Conn, (-0.1%); New Haven-Milford, Conn. (-1.8%); New Orleans-Metairie, La. (-6.1%) and Worcester, Mass.-Conn. (-7%).

      “The current cycle of home price appreciation is closing in on its fourth year with no apparent end in sight,” said Anand Nallathambi, president and CEO of CoreLogic. “Pent-up buying demand and affordability, together with higher consumer confidence buoyed by a more robust labor market, are a potent mix fueling a 6.5% jump in home prices through June with more increases likely to come.”

      Looking ahead

      The CoreLogic HPI forecast indicates home prices -- including distressed sales -- will increase by 0.6% month-over-month from June 2015 to July 2015 and by 4.5% on a year-over-year basis from June 2015 to June 2016.

      Excluding distressed sales, home prices are projected to increase by 0.5% month-over-month from June 2015 to July 2015 and by 4.2% year-over-year from June 2015 to June 2016.

      Home prices continued to rise in June on both a year-over-year and month-over-month basis. CoreLogic reports its Home Price Index (HPI), which track home ...

      Audi Q3 earns IIHS TOP SAFETY PICK award

      The small SUV received good crashworthiness ratings

      A strong showing for the 2016 Audi Q3 in the Insurance Institute for Highway Safety (IIHS) crashworthiness tests.

      The small SUV, which did well in the challenging small overlap front test, earned the 2015 TOP SAFETY PICK.

      To qualify for TOP SAFETY PICK, a vehicle must earn a good or acceptable rating for small overlap protection and good ratings in the other four crashworthiness tests. Vehicles that also earn an advanced or superior rating for front crash prevention qualify for TOP SAFETY PICK+.

      The Q3 doesn't have an available front crash prevention system.

      Overlap test results

      The Q3's structure held up well in the small overlap test, with maximum intrusion of four inches at the lower door-hinge pillar. The driver dummy's movement was well-controlled, with the head hitting the front airbag and remaining in place until rebound.

      The side curtain airbag deployed with sufficient coverage to protect the head from contact with side structure and outside objects. Measures taken from the dummy indicated a low risk of injuries in a crash of this severity.

      The SUV also earned good ratings in the moderate overlap front, side, roof strength, and head restraint tests.

      The Q3 was introduced in 2015. IIHS tested the 2016 model, but the good ratings apply to the first model year as well.

      A strong showing for the 2016 Audi Q3 in the Insurance Institute for Highway Safety (IIHS) c...

      Land O’Frost recalls sausage product

      The product contains pork which is not listed on the label

      Land O’Frost of Lansing, Ill., is recalling approximately 17 pounds of summer sausage product.

      The product contains pork which is not declared on the product label.

      There are no reports of adverse reactions due to consumption of this product.

      The following beef summer sausage item, produced on July 25, 2015, is being recalled:

      • 12 oz. packages of “Ambassador Beef Summer Sausage.”

      The recalled product bears the establishment number “EST. 500” which is printed with the lot code on the package, and was shipped to retail locations in Minnesota.

      Consumers with questions may contact the Land O’Frost consumer hotline at 1-800-762-9865.

      Land O’Frost of Lansing, Ill., is recalling approximately 17 pounds of summer sausage product. The product contains pork which is not declared on the prod...

      Hackers exploit Yahoo's ad network to spread malware and worse

      This also might explain a sudden spike in spoofed Yahoo email accounts

      This morning, security researchers at Malwarebytes announced the discovery that hackers were exploiting a flaw in Yahoo’s advertising platforms in order to infect people's devices with Angler exploit kits (essentially a particularly virulent form of malware).

      The affected websites include Yahoo.com and its related news, sport, and celebrity gossip pages.

      The attack started on July 28 and is still ongoing as of this morning. If your device is infected, the malware will significantly slow down your machine (by diverting computer functions to its own use) and drain its power. Analysts at Malwarebytes say hackers might use this particular exploit to plant Trojan software on your device – or simply hijack the device to send out still more malware.

      Yahoo said it's working on the problem. "As soon as we learned of this issue, our team took action to block this advertiser from our network," a Yahoo spokesperson said in an email but added that the scale of the attack "grossly misrepresented in initial media reports."

      Unfortunately, disruptive ad behavior affects the entire tech industry. Yahoo has a long history of engagement on this issue and is committed to working with our peers to create a secure advertising experience," Yahoo said.

      Hacking email accounts

      Coincidentally, or perhaps not, over the weekend I received spam emails from two friends' Yahoo email accounts (and neither friend had any idea until I told them). Unlike most email spoofing attempts I've encountered, this time the emails had partially disguised the senders' addresses to obscure the Yahoo connection.

      Here's what I mean: one of my friends – I'll give her the obviously fake name Jane Smith – has an email account JaneDSmith@yahoo.com , which she hasn't used in over a year. This weekend, I got a junk email from JaneD.Smith@munroy.ch . (An intense web search shows no actual email domains with an @munroy.ch address.) The email contained a link which I did not click on, since it surely would result in a bad malware infection.

      When I asked Jane about this, she told me the only email she has with the specific name JaneDSmith @anything was with an old Yahoo account she no longer uses. Interestingly enough, when she checked that Yahoo account (and changed its password), the “sent” folder showed no activity at all. Somehow, the spoofers managed to hijack Jane's account and address book without leaving any signs in the account itself.

      Something similar happened with my other friend, whom I'll give the equally fake name John Doe: I got an email with a dangerous-looking link, allegedly from JohnRDoe@newindex.co.jp . A web search for that domain does turn up many Japanese-language web sites – none of which my friend John knows anything about. But he did confirm that the only JohnRDoe address he's ever had was with Yahoo, though when he checked his “sent” file he saw no sign of recent activity, either.

      Still, the timing of this particular outbreak of spoofed Yahoo emails might be coincidental, and unrelated to the advertising exploit uncovered by Malwarebytes.

      High rates of infection

      Chris Boyd of Malwarebytes told Business Insider that the exact number of devices affected by this exploit is currently unknown, but “the sheer numbers thrown at the Yahoo pages could potentially mean high rates of infection. Many Malvertising attacks tend to focus on specific geographical locations depending on ad networks used, but this campaign could have had a huge amount of reach.” Yahoo webpages collectively average 6.9 billion visits per month.

      Malwarebytes uncovered the exploit when it discovered a new piece of code inserted into the Yahoo advertising network. As Business Insider explains: “The code shows that the Yahoo ad network URL leads to Microsoft Azure websites, which have also been affected as part of this attack. Boyd said many of the Azure websites caught up in this attack are likely to have been phished accounts, as opposed to ones set up for the explicit purpose of scamming users.”

      This morning, security researchers at Malwarebytes announced the discovery that hackers were exploiting a flaw in Yahoo’s advertising platforms in order to...

      Baby Boomers cautioned on overexposure to stocks

      Fidelity says those approaching retirement need to reduce risk

      With retirement looming, Baby Boomers are being warned that they may have too much money invested in the stock market.

      In its second quarter analysis of its 401(k) accounts and Individual Retirement Accounts (IRA), Fidelity Investments reports Boomers approaching retirement have stock allocations higher than those recommended for their age group.

      Fidelity said it compared average asset allocations to an age-based target date fund and found that 18% of people ages 50-54 had a stock allocation at least 10% points or higher than recommended. For investors ages 55-59, that figure increased to 27%.

      Bonds have been losers

      There is probably a good reason for that. With the Federal Reserve's 0% interest rate policy, stocks have been in a roaring bull market since they bottomed in March 2009. Bonds – the traditional choice for people entering retirement – pay almost nothing.

      But the Fidelity analysis found that about 10% of its retirement account clients ages 55-59 had all their retirement assets in stocks. Whether or not the market corrects, as predicted, Fidelity says this is a risky strategy.

      "One thing we learned from the last recession is that having too much stock, based on your target retirement age, in your retirement account can expose your savings to unnecessary risk – it's the hidden danger that many workers are unaware of,” said Jim MacDonald, president, Workplace Investing, Fidelity Investments. “This is especially true among workers nearing retirement, who should be taking steps to protect what they've worked so hard to save."

      MacDonald says he isn't suggesting Boomers try to time the market. They should just make sure their assets are diversified as they approach retirement age.

      “Checking your account on a regular basis and ensuring your portfolio is properly balanced can ensure your allocation stays on track," he said.

      Opinions vary as to what constitutes a prudent retirement portfolio. According to Schwab, a “moderate risk” portfolio includes 60% in stocks. For retirees who want to play it conservative, Schwab suggests limiting stocks to 20% of the allocation.

      Balances are down

      The Fidelity analysis also found the average 401(k) balance went down slightly at the end of the quarter to $91,100 from $91,800 at the end of the first quarter. At the same time, IRA balances increased to $96,300 at the end of the period, up from $94,000 at the end of the first quarter.

      The report also found an increase in clients taking out loans against their retirement accounts.

      “While the percentage of people initiating a loan (10.1 percent) and the percentage of loans outstanding (21.9 percent) have remained steady over the last several quarters, the average 401(k) loan amount continues to increase,” the authors wrote.

      The average loan amount reached $9,720 at the end of the second quarter, up from $9,630 at the end of previous quarter and $9,500 a year ago.

      Internal Revenue Service (IRS) rules allow for loans from qualified 401(k) plans but not from IRAs. Loans are capped at 50% of the amount in the account. Repayment of the loan must occur within five years, and payments must be made in substantially equal payments that include principal and interest and that are paid at least quarterly.

      With retirement looming, Baby Boomers are being warned that they may have too much money invested in the stock market.In its second quarter analysis of...

      Evidence mounts that the anemic economy is running out of gas

      Consumers still appear to be under stress

      Even as the Federal Reserve pondered when and whether to raise interest rates – they've been at 0% for 6 years – there was more evidence the economy is far from over-heating.

      Three reports late last week seemed to bring it home.

      First, the Labor Department Friday reported a minuscule rise in labor costs, meaning workers didn't receive as much pay. In fact, the increase in second quarter labor costs was the smallest in the last 33 years.

      That fact took economists by surprise since businesses have been busy hiring new employees. Job openings are at the highest level in years. It suggests that new employees aren't making all that much money.

      In the second quarter, the biggest pay cut came for information workers, who saw compensation decline 1.6%.

      Easy to get a table

      Meanwhile, the National Restaurant Association reported its Restaurant Performance Index (RPI) fell in June for the second straight months. The RPI, which tracks the health and outlook of the restaurant industry, was down 0.4% from May, which until June was at its lowest level in 9 months.

      Again, that goes against the conventional wisdom that consumers, with more money in their pockets because of lower gasoline prices, would go out to restaurants more. While traffic is up in some places, restaurant operators seem to be worried it won't last.

      "Although same-store sales and customer traffic levels remained positive in June, the overall RPI declined as a result of dampened optimism among restaurant operators," said Hudson Riehle, Senior Vice President of the Research and Knowledge Group for the Association. "The proportion of restaurant operators expecting sales growth fell to its lowest level in 9 months, while operators' outlook for the economy turned negative for the first time in nearly 2 years."

      Optimism about the potential for sales growth has been on a downward trend in recent months. Forty-two percent of restaurant operators said they expect to have higher sales in 6 months, down from 59% just three months ago. Only 8% of restaurant operators expect their sales volume in 6 months to be lower than it was during the same period in the previous year, which is a slight improvement over last month.

      Negative outlook

      More troubling, perhaps, is the index shows restaurant operators' outlook for the overall economy turned negative for the first time in nearly 2 years. Only 17% of restaurant operators said they expect economic conditions to improve in 6 months, down from 30% last month. Twenty-one percent actually expect economic conditions to worsen in 6 months, up from just 11% last month.

      Last week also brought the first reading on second quarter Gross Domestic Product (GDP) from the Commerce Department, adding to a growing sense of economic unease. The government found the economy grew by just 2.3%, not even rising to the forecast 2.6%.

      The first quarter reading was revised upward, but it was small consolation. Instead of shrinking by 0.2%, it grew by 0.6%.

      Even as the Federal Reserve pondered when and whether to raise interest rates – they've been at 0% for 6 years – there was more evidence the economy is far...

      Personal incomes, spending on the rise in June

      Consumers also tucked away more money in their savings accounts

      Both personal incomes and spending rose in June, adding to the gains they registered a month earlier.

      The Bureau of Economic Analysis reports personal income increased $68.1 billion, or 0.4% with disposable personal income (DPI) -- personal income less personal current taxes -- up $60.6 billion, or 0.5%.

      In May, personal income was up a revised 0.4%, DPI increased by a revised 0.4%. and PCE increased $90.8 billion, or 0.7 percent, based on revised estimates.

      Personal consumption expenditures (PCE), meanwhile, edged up $25.9 billion or 0.2%, compared with a revised gain of 0.7% a month earlier.

      Wages and salaries rose $18.3 billion after a surge of $32.0 billion in May. Private wages and salaries were up $16.0 billion, while government wages and salaries increased $2.3 billion; little changed from the month before.

      Personal outlays and saving

      Personal outlays -- PCE, personal interest payments, and personal current transfer payments -- rose $30.5 billion in June, about one-third of the $95.4 billion advance in May.

      Personal saving -- DPI less personal outlays -- was $646.3 billion in June, about $30 billion more than in May. The personal saving rate -- personal saving as a percentage of disposable personal income -- was 4.8% in June, up 0.2% from May.

      The complete income and spending report is available on the Commerce Department website.

      Manufacturing economy

      Growth in new orders, production and employment kept the manufacturing sector of the economy perking along in July, although at a slower pace than the month before.

      The latest Institute for Supply Management (ISM) report on business shows economic activity in the manufacturing sector expanded in July for the 31st consecutive month, while the overall economy grew for the 74th month in a row.

      The July PMI registered 52.7% -- down 0.8% from the June reading.53.5 percent. New orders were up 0.5%, while production jumped 2%. Employment, on the other hand, fell 2.8%, “reflecting growing employment levels from June but at a slower rate,” said Bradley J. Holcomb, CPSM, CPSD, chair of the (ISM) Manufacturing Business Survey Committee.

      Sector performance

      Of the 18 manufacturing industries, the following 11 reported growth in July:

      1. Textile Mills;
      2. Paper Products;
      3. Apparel, Leather & Allied Products;
      4. Printing & Related Support Activities;
      5. Furniture & Related Products;
      6. Fabricated Metal Products;
      7. Nonmetallic Mineral Products;
      8. Electrical Equipment, Appliances & Components;
      9. Food, Beverage & Tobacco Products;
      10. Transportation Equipment; and
      11. Miscellaneous Manufacturing.

      The five industries reporting contraction were:

      1. Wood Products;
      2. Primary Metals;
      3. Plastics & Rubber Products;
      4. Chemical Products; and
      5. Machinery.

      Both personal incomes and spending rose in June, adding to the gains they registered a month earlier. The Bureau of Economic Analysis reports personal inc...

      AT&T launches DirecTV bundle

      Company promotes wireless and satellite TV services on one bill

      Bundles aren't exactly a new thing. Cable TV providers often bundle TV, Internet, and telephone services.

      But AT&T;claims to have broken new ground by bundling DirecTV and wireless services starting August 10. It can make that offer by virtue of its purchase of DirecTV, a merger that got regulatory approval only last week.

      Consumers who sign up will be able to watch cable TV on their smartphones and tablets, not just at home.

      AT&T; says the savings will be substantial. Customers will get HD and DVR service for up to four TV receivers, unlimited talk and text for four wireless lines, and 10GB of shareable wireless data for $200 per month. By AT&T;'s calculations, that's an annual savings of $600 or more in the first 12 months, but as a practical matter, it works out to a $10 a month discount for getting all the services on a single bill.

      “We’re going to deliver more TV and entertainment choices to more screens – when and where our customers want it,” said AT&T; VP Brad Bentley. “And we’ll offer incredible value with more flexibility and convenience through our integrated packages that deliver a great experience.”

      Immediate wireless access

      Hoping to spur new subscriptions, AT&T; is offering new customers immediate access to DirecTV on their wireless devices as soon as they walk out of the store; customers won't even have to wait for the satellite receiver to be installed. That feature will be delivered through the DirecTV app, which can be downloaded and installed during the sales and activation process.

      AT&T; said it is now offering DirecTV service in more than 2,000 AT&T; retail stores nationwide, built around different bundling packages. They include:

      • DirecTV Select or U-verse U-Family, $50 per month
      • DirecTV Xtra or U-verse U-200, $70
      • DirecTV Ultimate or U-verse U-300, $75
      • DirecTV Premiere or U-verse U-450, $125

      Customers will be able to include AT&T;’s wireless services, with 10GB of shareable data and unlimited talk and text for four phone lines, for $160 per month. Add that to the basic TV plan for $50, with service on up to four TVs, AT&T; says consumers will pay $200 per month for the All-in-One plan after a $10 a month combined bill discount.

      Part of the promotion is designed to entice defections from rival companies. AT&T; says DirecTV and U-Verse TV customers who switch to AT&T; wireless service from another wireless provider will get a $300 credit when they buy a smartphone on AT&T; Next and trade in an eligible smartphone.

      Adding Internet service

      Customers can add AT&T; high-speed Internet services and get price incentives as part of the “All-Included” plans. Introductory 12-month promotional pricing includes the wi-fi gateway with no monthly fees for equipment. Different pricing is available for three speed tiers, including:

      • AT&T; high-speed Internet with speeds up to 6Mbps, $30 per month
      • AT&T; high-speed Internet with speeds up to 24Mbps, $40 per month
      • AT&T; high-speed Internet with speeds up to 45Mbps and 75Mbps, $50

      With the completion of the merger and the new bundle offer, AT&T; says it is now the largest pay TV provider in the world, providing service to more than 55 million customers in the United States, Latin America, and the Caribbean.

      More importantly, industry analysts say it's another step toward the convergence of old and new media, with consumers expecting to be able to “watch TV” on their wireless devices, and providers taking steps to make that happen.

      Bundles aren't exactly a new thing. Cable TV providers often bundle TV, Internet, and telephone services.But AT&T claims to have broken new ground by b...

      Feds close Wisconsin supplement manufacturers

      Companies have to get permission to resume operations

      The U.S. Justice Department has charged three Wisconsin dietary supplement manufacturers with misbranding their products and not complyiing with federal good manufacturing practices. The firms have agreed to cease operations until they receive approval to resume.

      The complaint was filed Friday against Atrium Inc., Aspen Group Inc., Nutri-Pak of Wisconsin Inc., and the owners of the three firms. Supplements manufactured by the firms include Atrium brands Chole-Sterin, Di-Acid Stim, Ocu-Comp and Super-Flex; Aspen brand Flexile-Plus; and Nutri-Pak brands Glucobiotic Supreme and Ocu-Comp.

      The companies, all located in Wautoma, Wisconsin, sell dietary supplements to retail stores, healthcare professionals and directly to consumers via the Internet.

      The complaint alleges that the firms were violating the federal Food, Drug and Cosmetic Act (FDCA) by failing to comply with current good manufacturing practices that, among other things, require manufacturers to establish specifications to ensure the identity and potency of the ingredients in dietary supplements. 

      The complaint also alleges that the firms’ products were misbranded because they failed to identify the part of the plant from which the ingredients were derived, did not list the number of servings per container and failed to identify the serving size.

      “Makers of dietary supplements who do not follow the FDA’s regulations put the public at risk,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. 

      The defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from violating the FDCA.  The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that their manufacturing practices have come into compliance with the law. The proposed consent decree is awaiting approval by the court

      The U.S. Justice Department has charged three Wisconsin dietary supplement manufacturers with misbranding their products and not complyiing with federal go...

      Discovery of new marker for basal-like breast cancer could speed diagnosis, treatment

      Researchers hope that their findings could benefit people with other forms of cancer as well

      There may be new hope for people suffering with breast cancer. Researchers from the Boston University School of Medicine and University of Cyprus are currently looking into a way of detecting and treating one of the most fatal forms of the disease: basal-like breast cancer (BLBC).

      BLBC is a particularly vicious form of breast cancer that professionals refer to as a “triple negative”. This means that it cannot be treated with medical therapies that are commonly used in other forms of cancer. BLBC also spreads through the body much more quickly, and those who develop it have a smaller chance of survival. African Americans and women under the age of 40 are most likely to develop the disease, and once it has spread through the body, doctors have a very limited ability to treat it.

      Finding markers

      Doctors have struggled with BLBC because, up to this point, there have been no clear indicators or markers for when the disease will flourish. If these were discovered, doctors would be able to react and respond much more quickly to the disease, and certain drugs and alternative treatments could be developed. Luckily, researchers are already well on their way to accomplishing this feat.

      Scientists discovered an indicator for BLBC when they were examining markers on the surface of cancer cells. They compared these markers with genes from breast cancer tumors that were recorded in public databases. They found that a certain molecule, designated as IL13RA2, was plentiful in metastatic, or late-stage, BLBC. With this knowledge, they were able to predict the chances of progression-free survival based on how high the levels of these molecules were in cancer cells. In short, certain types of BLBC tended to spread quickly to the lungs if they had high levels of IL13RA2.

      Extended benefits

      Although this seems to be a positive marker for BLBC, the good news does not stop there. Scientists found that if they reduced the amount of IL13RA2 in cancer cells, then the growth of the tumors decreased dramatically. This caused the cancer cells to have a very low rate of spreading to the lungs, and suggests that IL13RA2 is a major factor in cancer growth.

      “This discovery offers a glimmer of hope for patients stricken with BLBC. Personalized cancer therapies could be developed by targeting breast cancer cells that express copious levels of IL13RA2,” said Sam Thiagalingam, who co-authored the study.

      The researchers are hopeful that their discovery may lead to breakthroughs with other forms of cancer as well. High levels of IL13RA2 are common in many forms of the disease, so investigating it further has the potential to provide tremendous results. The full study has been published in Breast Cancer Research

      There may be new hope for people suffering with breast cancer. Researchers from the Boston University School of Medicine and University of Cyprus are curre...

      Feds warn of possible Salmonella contamination in pork

      Of particular concern are whole pigs used for pig roasts

      If you plan on attending a pig roast any time soon, be careful what you eat.

      The Agriculture Department’s Food Safety and Inspection Service (FSIS) has issued a public health alert because of concerns about illnesses caused by Salmonella that may be associated with pork products -- specifically whole pigs used for pig roasts.

      The agency, which was notified of Salmonella I 4,[5],12:i- illness clusters -- groups of illnesses -- on July 15, suspects a link between the illnesses associated with whole pigs used for pig roasts and eight illness clusters based on information gathered in conjunction with the Washington State Department of Health and the Centers for Disease Control and Prevention (CDC).

      Case-patients have been identified in Washington with illness onset dates ranging from April 25, 2015, to July 21, 2015.

      The investigation is continuing as FSIS works with the Washington State Department of Health and the CDC.

      What to do

      Roasting a pig is a complex undertaking with numerous potential food handling issues. Consumers should keep four food safety steps in mind:

      • CLEAN: Obtain your pig from a reputable supplier. Have the supplier wrap it in plastic, or a large plastic bag to contain the juices. Keep the pig cold until it is time to cook it. If you can’t keep it under refrigeration or on ice, consider picking it up just before you are ready to cook it.
      • SEPARATE: Anything that comes into contact with whole pig should be washed with hot soapy water afterward. This includes hands and utensils.
      • COOK: FSIS recommends that all pork products be cooked to a minimum internal temperature of 145º F with a 3-minute rest time. Make sure to check the internal temperature with a food thermometer in several places. Check the temperature frequently and replenish wood or coals to make sure the fire stays hot. Remove only as much meat from the carcass as you can serve within 1-2 hours.
      • CHILL: Once the meat is cooked, transfer to clean serving dishes. Pack leftovers in shallow containers and refrigerate within 1-2 hours. It is not necessary to cool the food before you refrigerate it.

      A serious illness

      Consumption of food contaminated with Salmonella can cause salmonellosis, one of the most common bacterial foodborne illnesses. The most common symptoms of salmonellosis are diarrhea, abdominal cramps, and fever within 12 to 72 hours after exposure to the organism. The illness usually lasts 4 to 7 days.

      Most people recover without treatment. In some persons, however, the diarrhea may be so severe that the patient needs to be hospitalized. Older adults, infants, and persons with weakened immune systems are more likely to develop a severe illness. Individuals concerned about an illness should contact their health care provider.

      If you plan on attending a pig roast any time soon, be careful what you eat. The Agriculture Department’s Food Safety and Inspection Service (FSIS) has iss...

      Chrysler recalls Dodge Chargers

      The side air bag inflatable curtains and seat air bags may unexpectedly deploy

      Chrysler (FCA US LLC) is recalling 284,153 model year 2011-2014 Dodge Chargers manufactured May 6, 2010, to June 5, 2014.

      The side impact sensor calibrations may be overly sensitive, and as a result, the side air bag inflatable curtains and seat air bags may unexpectedly deploy and the seat belt pre-tensioners may activate, increasing the risk of a crash or injury.

      Chrysler will notify owners, and dealers will update the Occupant Restraint Control module calibration, free of charge. The manufacturer has not yet provided a notification schedule.

      Owners may contact Chrysler customer service at 1-800-853-1403. Chrysler's number for this recall is R35.

      Chrysler (FCA US LLC) is recalling 284,153 model year 2011-2014 Dodge Chargers manufactured May 6, 2010, to June 5, 2014. The side impact sensor calibrat...

      Good Food Made Simple recalls turkey and pork products

      The products were returned from Canada and were not presented for U.S. returned export inspection

      Good Food Made Simple of Wellesley, Mass., is recalling approximately 3,574 pounds of previously exported turkey sausage breakfast burritos and pork strips and turkey sausage breakfast bowls.

      The products were exported to Canada, brought back into the U.S., and distributed in California without undergoing U.S. inspection.

      There are no confirmed reports of adverse reactions due to consumption of these products.

      The following products are being recalled:

      • 1998.75 lbs. (533 cases) of “Good Food Made Simple Turkey Sausage Breakfast Burrito” bearing expiration date “03/22/2016.”
      • 1575 lbs. (450 cases) of “Good Food Made Simple Pork Strips & Turkey Sausage Breakfast Bowl” bearing expiration date “03/19/2016.”

      Consumers with questions about the recall may contact Corinne Lupi at Good Food Made Simple, at clupi@foodmark.com.

      Good Food Made Simple http://www.goodfoodmadesimple.com/ of Wellesley, Mass., is recalling approximately 3,574 pounds of previously exported turkey sausag...

      Nissan recalls Rogues, Sentras and Versa Notes

      The driver side front and rear doors may not fully latch

      Nissan North America is recalling 6,595 model year 2015 Nissan Rogue vehicles manufactured June 9, 2015, to June 10, 2015; and 2015 Nissan Sentra and Versa Note vehicles manufactured June 5, 2015, to June 13, 2015.

      The driver side front and rear doors may not fully latch, which could result in the door opening while the car is moving. The distraction may increase the risk of a crash and/or vehicle occupants may fall out of the vehicle if they are not wearing a seatbelt, increasing their risk of injury.

      Nissan will notify owners, and dealers will inspect the date, lot number, and cavity code on the left front and rear door latches, and replace them, as necessary, free of charge. The recall is expected to begin by mid-September 2015.

      Owners may contact Nissan customer service at 1-800-647-7261.

      Nissan North America is recalling 6,595 model year 2015 Nissan Rogue vehicles manufactured June 9, 2015, to June 10, 2015; and 2015 Nissan Sentra and Versa...

      Select varieties of Kraft Singles products recalled

      A thin strip of the individual packaging film may remain adhered to the product

      The Kraft Heinz Company is recalling select code dates and manufacturing codes of Kraft Singles individually-wrapped slices.

      A thin strip of the individual packaging film may remain adhered to the slice after the wrapper has been removed, potentially causing a choking hazard.

      There have been 10 consumer complaints to date about the packaging, including 3 reports of consumers choking.

      The recall applies to 3-lb. and 4-lb. sizes of Kraft Singles American and White American pasteurized prepared cheese product with a Best When Used By Date of 29 DEC 15 through 04 JAN 16, followed by the Manufacturing Code S54 or S55.

      The Best When Used By Date and Manufacturing Code are stamped on both the larger 3-lb. and 4-lb. boxes and the enclosed individual 1-lb. packages.

      The following products are being recalled:

      Product3 or 4 lb Box Best When
      Used By Code Date
      1 lb Package Best When
      Used By Code Date
      3 or 4 lb Box UPC1 lb Package UPC
      4 LB Kraft Singles American29 DEC 15 S54
      30 DEC 15 S54
      31 DEC 15 S54
      01 JAN 16 S54
      29 DEC 15 S 54
      29 DEC 15 S 55
      30 DEC 15 S 54
      30 DEC 15 S 55
      31 DEC 15 S 54
      31 DEC 15 S 55
      01 JAN 16 S 54
      01 JAN 16 S 55
      0 2100063360 9No UPC - Clear outer wrapper
      3 LB Kraft Singles American30 DEC 15 S54
      31 DEC 15 S54
      03 JAN 16 S54
      04 JAN 16 S54
      30 DEC 15 S 54
      30 DEC 15 S 55
      31 DEC 15 S 54
      31 DEC 15 S 55
      03 JAN 16 S54
      03 JAN 16 S55
      04 JAN 16 S54
      04 JAN 16 S55
      0 2100060491 30 2100061526 1
      3 LB Kraft Singles White American02 JAN 16 S 54
      03 JAN 16 S 54
      02 JAN 16 S 54
      02 JAN 16 S 55
      03 JAN 16 S 54
      03 JAN 16 S 55
      0 2100061582 70 2100061527 8
      4 LB Kraft Singles White American02 JAN 16 S 5402 JAN 16 S 54
      02 JAN 16 S 55
      0 2100063448 4No UPC - Clear outer wrapper

      Approximately 36,000 cases of the recalled product were shipped by Kraft Heinz to retailers in the U.S., Puerto Rico and Grand Cayman. The product was NOT shipped to Canada.

      Customers who purchased this product should not eat it, but should return it to the store where purchased for an exchange or full refund.

      Consumers may contact Kraft Heinz consumer relations for a full refund, at 1-800-432-3101, Monday through Friday, 9am to 6pm (ET).

      The Kraft Heinz Company http://www.kraftfoodsgroup.com/home/index.aspx is recalling select code dates and manufacturing codes of Kraft Singles individuall...