Biz bits

Unemployment reports signal weak recovery

WASHINGTON --- A gauge of future U.S. economic activity and a report on unemployment benefits signaled Thursday that the recovery likely will remain weak in the coming months.

The Conference Board's index of leading economic indicators rose less in October than analysts had expected. The index forecasts activity by measuring consumer expectations, building permits and other data.

And the number of newly laid-off American workers seeking unemployment benefits, unchanged last week, remains above the level that would indicate the economy is adding jobs.

Together, the two reports suggested that the lack of job creation is dampening consumer expectations and prospects for an economic rebound. Uneasy consumers likely will curtail spending, which powers about 70 percent of the U.S. economy.

New jobless claims have fallen about 22 percent since spring.

Foreclosure rate rises for good credit owners

WASHINGTON --- The foreclosure crisis likely will persist well into next year as high unemployment pushes more people out of homes, pulls down housing prices and raises concerns about the broader economic recovery.

The latest evidence was a report Thursday that a rising proportion of fixed-rate home loans made to people with good credit are sinking into foreclosure. That's a shift from last year, when riskier subprime loans drove the housing crisis.

The Mortgage Bankers Association's report also found that 14 percent of homeowners were either behind on payments or in foreclosure at the end of September. It was a record-high for the ninth straight quarter.

AOL plans to shed at least a third of workers

SAN FRANCISCO --- The struggling Internet company AOL plans to shed up to 2,500 jobs -- more than a third of its work force -- as it prepares to separate from Time Warner and finally sever their ill-fated marriage.

Major job cuts had been expected and seemed certain after Time Warner said last week that AOL would take $200 million in charges for severance and other restructuring-related costs. But the magnitude was not known until Thursday.

AOL, which has already pared thousands of workers in recent years and now employs about 6,900, is asking for volunteers to accept buyouts. If it falls short of the 2,500 target, it plans layoffs to reach a payroll cut of up to 2,300 positions, a third of its current total.