In brief: Fiat Chrysler earnings hurt by recall penalties

DETROIT – Net income at Fiat Chrysler’s U.S. operations fell 3 percent last quarter due largely to a $90 million charge to pay government penalties for mishandling recalls.

The company said it made $598 million from April to June, compared with $619 million a year ago. The decline also included a$71 million loss from paying off $2.9 billion in secured notes.

The drop came even though worldwide sales rose 5 percent to 762,000 for the quarter, including a 6 percent increase in U.S. retail sales to individual buyers.

Revenue for the quarter rose nearly 11 percent to $22.6 billion, mainly because of higher global sales and prices.

Chief Financial Officer Richard Palmer said the Jeep brand had its best quarter ever, with global sales up 47 percent from a year ago to 316,000.

Hiring rate contracts, but job gains still solid

WASHINGTON – The rate of hiring by U.S. businesses slowed in July, according to a private survey. But job gains remained at a solid level, which should help boost overall economic growth.

Payroll processor ADP said that companies added 185,000 jobs last month, down from 229,000 in June.

The government will issue its official jobs report for July on Friday, which provides a fuller look at the economy than the ADP survey. Economists forecast the government report will show that employers added 225,000 jobs, and the unemployment rate held at 5.3 percent for the second straight month.

U.S. trade gap widens as imports increase

WASHINGTON – The U.S. trade deficit increased in June as solid consumer spending pulled in more imports, while the strong dollar restrained exports.

The Commerce Department said Wednesday the trade gap jumped 7 percent to $43.8 billion in June, up from $40.9 billion in May. Imports increased 1.2 percent to $232.4 billion, while exports edged lower to $188.6 billion from $188.7 billion.

U.S. manufacturers have been held back this year by the strong dollar, which makes their products more expensive overseas.

Index for services firms reaches record level

WASHINGTON – Business at U.S. services companies surged in July, the Institute for Supply Management reported Wednesday.

The institute said its services index rose to 60.3 last month, the highest since the index was created in 2008 and up from 56 in June. Any reading above 50 shows growth in the services sector.

Its measure of business activity for services firms rose to 64.9 from 61.5 in June. New orders and employment were also up strongly. Export orders also rose at a faster pace, despite a strong dollar that makes U.S. products and services more expensive in overseas markets.

Mazda to recall SUVs over front suspension

DETROIT – Mazda is recalling its biggest SUV to fix suspension parts that can rust and come loose, causing a loss of steering control.

The recall covers 206,000 CX-9 SUVs from the 2007 through 2014 model years, mainly in the U.S. and Canada.

The company said in documents posted Wednesday by U.S. safety regulators that front ball joints can rust from water leaks and separate from the suspension. Ball joints allow the wheels to pivot when the steering wheel is turned.

Owners will be notified by letter starting in September.