Business digest 03/08/06

Productivity drops for first time in four years

WASHINGTON -- The efficiency of American workers declined in the final three months of 2005, the first time that has happened in more than four years, while wage pressures accelerated. Americans' productivity, a key determinant of rising living standards, dipped at an annual rate of 0.5 percent in the October-December quarter, while wages rose at a 3.3 percent pace, the fastest gain in a year, the Labor Department reported Tuesday. Both figures were slightly revised from original estimates a month ago which had productivity falling at a 0.6 percent rate and wage costs rising at a 3.5 percent rate in the fourth quarter.

Microsoft revamping Internet search engine

SEATTLE -- In its latest bid to catch up with rivals Google Inc. and Yahoo Inc., Microsoft Corp. is launching a revamped Internet search engine it says will help computer users find information faster, view it more easily and organize it better. Debuting in test form today, Windows Live Search is Microsoft's latest move in a major strategy shift that has the world's largest software company focusing more heavily on Internet-based software and services. The goal of the shift is to create online products to complement its main cash cows: the Windows operating system and Office business software.

Good weather boosts Americans' borrowing

WASHINGTON -- Americans increased their borrowing at the fastest pace in four months in January as unusually mild weather during the month encouraged shoppers to head for the malls and use their credit cards. The Federal Reserve reported Tuesday that consumer credit grew at an annual rate of 2.2 percent in January, up from a 1.9 percent rate of increase in December.

-- From wire reports