ECONOMY

Inflation Worries Likely To Ease on Report

WASHINGTON — Growth in worker productivity slowed sharply in the summer while wages and benefits rose at a rate that was far below a previous estimate, a development likely to ease inflation worries at the Federal Reserve. Productivity edged up at an 0.2% annual rate in the July-September quarter, the Commerce Department said yesterday. That was slightly better than the zero change reported a month ago. Wages and benefits per unit of output increased at an annual rate of 2.3% in the third quarter, much slower than the 3.8% advance previously reported.

— Associated Press

Toll Brothers: Housing May Be Bottoming

Luxury builder Toll Brothers Inc. is seeing signs that the troubled housing industry may be bottoming in certain markets, although the company still posted a sharp 44% earnings decline, large writedowns, and a 56% order decrease in its fiscal fourth quarter. “Fifteen months into the current slowdown, we may be seeing a floor in some markets where deposits and traffic, although erratic from week to week, seem to be dancing on the bottom or slightly above,” Chairman and Chief Executive Robert Toll said during a conference call yesterday. He said the metro Washington markets of northern Virginia and Maryland appear to be stabilizing.

— Dow Jones Newswires

PBGC: Maximum Benefit Next Year Will Be $49,500

WASHINGTON — The federal agency that insures private pension plans for millions of Americans announced yesterday that the maximum annual benefit for plans taken over next year will be $49,500 for workers who wait until 65 to retire. The figure represents a 3.9% increase from $47,659,which is this year’s maximum annual benefit for those who wait until 65 to retire. Workers who retire before they are 65 get smaller benefits, while those who work longer get larger benefits, the Pension Benefit Guaranty Corp. said. The benefit figure is arrived at each year based on a formula set in law that takes into account such factors as growth in the benefit base. The PBGC insures pensions for 44 million workers and retirees.

— Associated Press

AVIATION

Plan Withdrawn on Foreign Control of Airlines

WASHINGTON — Already rebuffed by a Republican-controlled Congress, the Bush administration withdrew its plan to give foreign investors more management control of U.S. airlines. The decision was announced yesterday byTransportation Secretary Mary Peters after the department reviewed public comments about the proposal, including votes by the Senate and House this year to prevent the plan from going forward.

— Associated Press

Lufthansa To Announce Boeing 747-8 Purchase

In a major boost for Boeing Co. at the expense of its European rival, longtime Airbus customer Deutsche Lufthansa AG could announce as soon as today that it will be the first to order the passenger version of Boeing’s updated 747 jumbo jet. According to people familiar with the situation, Lufthansa has agreed to place firm orders for 20 planes, as well as taking options for 20 more. The move is an especially harsh blow to Airbus because Lufthansa, in 2001, was among the first customers for the A380 superjumbo.

— Dow Jones Newswires