Most Recent Posts

Big box stores sell groceries, tools, and now even offer home mortgages. But critics warn the financial products aren't regulated like they are at banks. Host Michel Martin discusses the pros and cons of big box banking with New York Times business reporter Stephanie Clifford.

Renee Montagne talks with Wall Street Journal economics editor David Wessel about the issues separating President Obama and congressional Republicans in the high-stakes budget talks.

U.S. companies in October increased their orders of machinery and equipment that signal investment plans by the largest amount in five months, a hopeful sign for future economic growth.

Orders for core capital goods, considered a proxy for business investment, rose 1.7 percent in October, the best showing since a 2.3 percent rise in May, the Commerce Department said Tuesday. Orders in this category had slowed beginning in the spring, acting as a drag on overall economic growth.

Total orders for durable goods were unchanged in October at $216.9 billion following a 9.2 percent jump in September that had been driven by a surge in demand for commercial aircraft. In October, demand for machinery, primary metals and communications equipment increased while orders for autos, airplanes and computers fell.

Many businesses had been holding back because they are worried about tax increases and federal spending cuts — known as the "fiscal cliff" — that will take effect in January unless Congress reaches a budget deal before then. Most economists predict the economy will suffer a recession in the first half of 2013 if lawmakers and President Barack Obama can't avoid the fiscal cliff.

White House economists on Monday warned that the uncertainty of a potential hike in taxes next year for middle class taxpayers could hurt consumer confidence and spending during the crucial holiday shopping season.

Businesses have also grown more cautious because Europe's financial crisis has pushed many countries in the region into recession. That has cut into U.S. exports and corporate profits. Growth has also slowed in China, Brazil and other big developing nations which are major markets for American exports.

U.S. factory activity grew in October for a second straight month, according to the Institute for Supply Management closely watched manufacturing survey. But regional surveys indicated manufacturing shrank this month in the Philadelphia and New York regions, partly reflecting damage from Superstorm Sandy that disrupted area factories.

The storm may have also weighed on durable goods orders in October, although most economists expect the storm's impact to fade in the coming weeks.

The economy is expanding at a modest pace. Many economists now predict growth at an annual rate of roughly 3 percent in the July-September quarter, up from the initial estimate of 2 percent reported last month. The government releases its second estimate for third-quarter growth on Nov. 29.

Still, many economists say the economy is growing in the current October-December quarter at an annual rate below 2 percent. That's too slow to make much of a dent in the unemployment rate, which was 7.9 percent last month

For holiday shoppers, retailers' approach to fees, returns and other practices can bring praise or anger. And when customers rant or rave, Consumer Reports takes note — and compiles them into its annual "Naughty and Nice" list of companies.

"They're policies and practices that people either felt were consumer-friendly or not," Consumer Reports senior editor Tod Marks tells NPR's Steve Inskeep. He adds that the list isn't related to the ratings his magazine is known for.

The list includes 20 widely known companies — such as grocery stores Publix and Safeway (nice), and airlines Delta and Spirit (naughty).

The "naughty" offenses range from BMW and other carmakers' omission of spare tires in new models, and the clothing chain Forever 21's two separate policies for online and in-store returns.

Of particular note in this holiday season, retailer Abe's of Maine was criticized for the many exceptions to its 30-day money-back guarantee. Marks says that under the policy, the seller of electronics and appliances doesn't include microwaves, watches, TVs, laptops and other items.

The Naughty and Nice list reflects the opinions of Consumer Reports experts, along with the magazine's Facebook friends, Twitter followers and online subscribers, Marks says.

"Really, people are just so frustrated," he says. "And they're primarily frustrated because of the inability, or an unwillingness on the part of a lot of companies, to just simply listen to them."

On the "Nice" list, the return policies at Kohl's and Nordstrom came in for praise, as did the all-inclusive pricing of the Drury Hotel chain.

The Red Wing Shoe Co. was commended for allowing no-questions-asked returns of its boots. And PNC Bank won fans for offering a simple, unglamorous product: a free basic checking account, with no minimum balance.

Marks adds that a spot on the "Naughty and Nice" list doesn't necessarily mean a company is making a bad product.

"Oftentimes, we see companies that do very well in our survey, maybe they'll pop up on the naughty list," Marks says. "And conversely, we'll see companies that don't do so well sometimes have a nice policy ... We've got the good, the bad, and the ugly."