Business digest 01/04/06

Manufacturing growth slows in December

NEW YORK -- Manufacturing grew at a surprisingly slower pace in December, a month after construction spending jumped due to a pickup in highway and school building as well as projects that may be tied to recovery efforts in states hurt by 2005's deadly hurricanes. A private industry group which surveyed business executives said manufacturing slowed in December as prices for fuel and raw materials fell.

Wal-Mart 'behind the curve' in December sales

NEW YORK -- Tepid December sales at Wal-Mart Stores Inc. made Wall Street uneasy Tuesday, but many analysts don't expect disappointing results from other retailers -- most merchants are expected to meet their modest holiday expectations. Michael P. Niemira, chief economist at the International Council of Shopping Centers, agreed. He noted that Wal-Mart is still "behind the curve," despite its efforts in improving its merchandise offerings. Nonetheless, given Wal-Mart's size and reach, the estimated December same-store sales increase of 2.2 percent the retailer announced Saturday will hurt the overall industry's sales for the month. Wal-Mart's forecast is based on stores open at least a year, considered the best gauge of a retailer's strength.

Airline's parent firm ready to exit bankruptcy

CHICAGO -- United Airlines' parent company has entered the homestretch of its more than three-year stay in bankruptcy, well-positioned to emerge from Chapter 11 next month now that it has won creditors' support for its reorganization plan. UAL Corp. still has some disputes to resolve before seeking a judge's final go-ahead at a Jan. 18 to 20 confirmation hearing, including one over its controversial proposal to give 400 top managers 11 percent of the new stock in the reorganized company. But industry experts said Tuesday that no significant threats to a February exit appear to remain following its announcement late last week that a wide majority of creditors had voted for the reorganization plan.

Russia, Ukraine restart talks on price dispute

MOSCOW -- Russian and Ukrainian officials agreed Tuesday to resume talks on resolving a dispute over the price of natural gas that has reverberated across the continent and left Ukraine cut off from its supplies. Sergei Kupriyanov, a spokesman for Russia's state-owned gas monopoly Gazprom, said that Ukrainian officials were on their way to Moscow. He did not specify who would be taking part but said the talks would be "at a sufficiently high level." Gazprom cut off natural gas supplies to Ukraine on Sunday after the country refused to meet its demand for a fourfold price increase. Other European countries also reported drops in their supplies and Gazprom accused Ukraine of siphoning off gas bound for Europe -- a charge Ukraine denied.

-- From wire reports