Briefcase

American exports hit all-time high in July

WASHINGTON – American manufacturers sold more cars, airplanes and industrial machinery in foreign markets in July, sending exports to an all-time high and pushing the trade deficit down to its lowest level in three months.

The Commerce Department says the trade deficit narrowed to $44.8 billion in July, down 13.1 percent from June. The improvement reflected a 3.6 percent rise in exports to a record level of $178 billion, reflecting strong sales of a variety of manufactured goods. Imports dipped 0.2 percent to $126.9 billion as the bill for imported oil dropped 6 percent to $35.5 billion as crude oil prices fell.

The big jump in exports should provide critically needed support for U.S. growth at a time when the economy has been in danger of toppling into a recession.

Associated Press

Google buys restaurant review company Zagat

MOUNTAIN VIEW, Calif. – Google has bought the restaurant review service Zagat as it tries to help people connect with local businesses.

The founders, Nina and Tim Zagat, said they will remain a part of the 32-year-old company and will use Google’s resources and expertise to expand. Zagat currently offers reviews and ratings on restaurants in more than 100 cities around the world, based largely on surveys of diners.

Google plans to integrate Zagat with its search and mapping products.

In a blog post Thursday announcing the purchase, Google said Zagat “will be a cornerstone of our local offering.”

Google and other companies are trying to improve their local offerings as a way to sell more ads to local merchants.

Terms of the purchase were not disclosed.

Google’s stock rose 93 cents a share, to $536.72 on Thursday.

Shares of OpenTable Inc., which provides ways to make reservations at restaurants along with diners’ reviews, fell $5.23, or more than 8 percent, to $57.50.

Associated Press

Consumers’ reticence surprises Bernanke

WASHINGTON – Federal Reserve Chairman Ben Bernanke said Thursday that he’s surprised by how cautious consumers remain more than two years since the recession officially ended. But he offered no hints of further steps the Fed might take to try to boost the weak economy.

Bernanke noted that several factors have kept consumers from spending more: from high unemployment and falling home values to still-heavy debt loads and higher gasoline prices.

“Even taking into account the many financial pressures they face, households seem exceptionally cautious,” Bernanke said in a speech in Minneapolis to the Economic Club of Minnesota.

Bernanke said that higher prices for gas, cars and other consumer goods were due, in part, to temporary factors, such as supply disruptions stemming from Japan’s earthquake and nuclear crisis. As those factors continue to ease, the Fed chief said he expects inflation to moderate in the coming months.

He reiterated that the Fed will consider a range of options at its next policy meeting Sept. 20-21.

Associated Press