Biz bits

Goldman, Buffett will help small businesses

NEW YORK --- Goldman Sachs Group Inc. said Tuesday it is teaming with billionaire investor Warren Buffett to invest $500 million to provide thousands of small business owners with college scholarships and boost their access to capital.

The move comes as the company has been criticized for setting aside billions for employee paychecks.

Goldman's philanthropic effort, called "10,000 Small Businesses," includes a $200 million contribution to community colleges, universities and other institutions to give grants to small business owners.

The New York-based bank also will invest $300 million through a combination of lending and charitable support.

Decline in production signals slow recovery

WASHINGTON --- A decline in factory production in October signals that consumers and businesses remain cautious in their spending, with the economic recovery likely to be sluggish.

At the same time, the weak economy is taming inflation. Wholesale prices rose less than expected last month, giving the Federal Reserve more leeway to keep interest rates low to try to spur a stronger rebound.

Industrial production edged up 0.1 percent last month, the Fed reported Tuesday. It was the poorest showing since output fell 0.4 percent in June. Since then, industrial output had posted strong gains, helped by a rebound in auto production.

But auto output slipped 1.7 percent last month. That helped drag down total factory output, the biggest portion of industrial production.

Analysts say industrial production should post modest gains in coming months.