Business briefs 12/2/4

Fed: Economy picking up, consumers spending

WASHINGTON -- The economy is gaining momentum, bolstered by home building, shipping and even the country's beleaguered manufacturing sector, the Federal Reserve said Wednesday in a newly upbeat assessment. Evidence of a strengthening economy showed up in other reports as well while Wall Street hailed a big drop in oil prices. The Commerce Department said consumer spending shot up by 0.7 percent in October, the best showing since July, as Americans' incomes, the fuel for future spending, rose by 0.6 percent. The gain in incomes reflected the big increase of 337,000 payroll jobs in October, the best in seven months. Meanwhile, the Institute for Supply Management reported that its main index for measuring industrial activity performed better than expected, rising to 57.8 in November from 56.8 in October.

Toyota recalls Celicas to fix daytime lights

WASHINGTON -- Toyota Motor Corp. is recalling 92,577 Celica cars because their daytime running lights are too bright and could be dangerous, regulators said Wednesday. The recall affects Celicas from the 2000 and 2001 model years. Dealers will repair the vehicles for free beginning in March, the National Highway Traffic Safety Administration said. NHTSA also said General Motors Corp. will recall 1,378 of its new Chevrolet Cobalt coupes because a headlight bulb shield can loosen or break. Without the shield, the lights cause too much glare. Dealers will install new shields free.

-- From wire reports