[ Consumers... ]

Mar 28, 01:39 PM

Current Headlines: CONSUMERS

Index: Shoppers are likely to tighten belts

NEW YORK -- Consumers sent up a warning signal in March that rising gas prices, falling home values and a volatile stock market could hurt spending in the coming months, a widely watched index showed Tuesday.

The New York-based Conference Board said that its Consumer Confidence Index fell to 107.2, down from the revised 111.2 in February. Analysts had expected a reading of 109. The March index was the lowest since November 2006, when the reading was 105.3.

Economists closely monitor consumer confidence because consumer spending accounts for two-thirds of all U.S. economic activity. Confidence had been climbing, helped by consumers' faith in the job market. The Present Situation Index, which measures how shoppers feel now about economic conditions, increased slightly to 137.6 from 137.1 in February. The Expectations Index, which measures consumers' outlook in the next six months, declined to 86.9 from 93.8.

CHILD MAGAZINE

Publication becomes Web only, cuts jobs

Magazine publisher Meredith Corp. said Tuesday it would close its print version of Child magazine and maintain the title as an Internet product.

The move will result in 30 job cuts, company spokesman Art Slusark said. Another 30 company jobs will be axed because of "realignments, restructuring and revisions." Most of the positions are based in New York, he said.

Des Moines, Iowa-based Meredith, which publishes 25 subscription magazines including Better Homes and Gardens and owns TV stations and Web sites, said it would record a one-time $3 million severance- related charge for the eliminated jobs.

BRITISH AIRWAYS

Airline places order for 4 Boeing 777s

SEATTLE -- British Airways ordered four Boeing 777-200ER jetliners and secured options for four more of the two-aisle passenger craft, the manufacturer said Tuesday.

The four firm orders are worth more than $800 million at list prices, though customers often negotiate hefty discounts. London- based British Airways already operates 43 Boeing 777s and said it will use the new planes to expand its long-haul fleet.

Since the plane entered service in 1995, Boeing Co. has received more than 900 orders for the 777. The twin-engine aircraft was designed to be quieter and burn less fuel per seat than its closest four-engine competitor.

MICROSOFT

Xbox now offers a 120-gig hard drive

REDMOND, Wash. -- Microsoft Corp. will sell a version of its Xbox 360 with a 120-gigabyte hard drive and a souped-up high-definition video connection, in a bid to broaden the appeal of its popular console beyond video games.

Earlier versions of Xbox 360 came with 20 gigabytes of storage. But that filled up too quickly with movies, TV shows and games from the Xbox Live Marketplace online store, said Peter Moore, a corporate vice president in Microsoft's Interactive Entertainment group.

The new Xbox 360 Elite will sell for $479.99. Consumers who already own the $399.99 20-gigabyte model will be able to buy a snap- on 120-gigabyte hard drive for $179.99. Both the new console and the drive are expected to hit U.S. shelves April 29.

-- From news services

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