Housing construction increases, except in West

Housing construction posted a surprisingly large increase in February, bolstered by strength in all parts of the country except the West.

While the surge in construction was far better than the continued decline economists had expected, experts viewed the rebound as a temporary gain given all the problems the housing industry still faces.

The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent in February compared with January, pushing total activity to a seasonally adjusted annual rate of 583,000 units.

Even with the big increase, construction activity remains 47.3 percent below where it was a year ago. The strength in February was led by a sharp gain in apartment construction, which can be highly volatile from month to month.

Washington

Bankruptcy would scare customers, says GM exec

If General Motors Corp. were forced into Chapter 11 bankruptcy protection, the company would end up being liquidated because a long bankruptcy would scare customers away, Chief Executive Rick Wagoner said Tuesday.

Speaking at a breakfast in Washington, D.C., Wagoner said restructuring the company out of court would accomplish 99 percent of what could be achieved in bankruptcy, but without the risk of losing customers or the huge expense of Chapter 11.

Wagoner’s statements came as members of President Barack Obama’s auto task force told Michigan lawmakers they would signal next week what direction they plan to take to restructure GM and Chrysler LLC.

Dubai, United Arab Emirates

Standard & Poor’s downgrades Dubai firms

Standard & Poor’s cut the credit ratings of six Dubai government-backed entities and a leading property developer Tuesday, citing the global economic meltdown’s sharper-than-expected impact on the Mideast’s one-time boomtown.

The move comes despite a recent promise by the United Arab Emirates federal government to inject at least $10 billion into the ailing city-state, one of seven members of the UAE federation. The funds are meant to prop up the debt-ridden emirate and its many state-controlled enterprises.

The decision reflects concerns about Dubai’s debt-fueled exposure to the worsening world economy through sectors such as trade, tourism and commerce.

Federal Way, Wash.

Weyerhaeuser closes Oregon, Oklahoma mills

Timber and wood products company Weyerhaeuser Co. said Tuesday it closed two mills in Oklahoma and Oregon, as demand for lumber to build homes remains weak.

The closures at the company’s mills in Wright City, Okla., and Dallas, Ore., will affect about 307 workers, leaving Weyerhaeuser’s total employment at around 19,000. The shuttering of its Wright City mill is indefinite, while the Dallas closure is permanent.

Including the latest shutdowns, the company has reduced its softwood lumber capacity by nearly 20 percent in 2009.

From wire reports