Economy

Construction spending ends downward trend

Construction spending was flat in July as an increase in government work helped to blunt cutbacks in private builders’ construction projects, which dropped to the lowest level in nearly six years.

After declining for two months, the level of construction spending in July was unchanged at a seasonally adjusted annual rate of $834.1 billion, the Commerce Department reported Wednesday.

That report along with more forward-looking data showing that manufacturing barely grew in August point to a sputtering economic recovery, economists said.

Commerce Department

Acting director named as Sherrer’s replacement

Gov. Bill Graves recently announced Sherry Brown will become the Acting Secretary of the Kansas Department of Commerce and Housing.

Brown’s appointment will be effective Oct. 1 when Lt. Gov. Gary Sherrer leaves the post to accept a management position with a Leawood bank.

Brown was KDOC&H’s fiscal officer for eight years before she retired at the end of last year. Brown will serve as acting secretary until the new administration takes over in January.

Sherrer will continue to serve as lieutenant governor until his term expires on Jan. 13.

Kansas City

Job prospects positive for Consolidated workers

Consolidated Freightways’ competitors are snapping up the bankrupt trucking company’s former employees and shipping business.

The Vancouver, Wash.,-based firm announced Monday that it was ceasing operations, which left more than 400 workers jobless in Kansas City, Mo.

Consolidated’s competitors, including Overland Park-based Yellow Corp., are hiring drivers.

Keith Clavin, president of Teamsters Local 41, which represented Consolidated’s hourly workers in Kansas City, said he anticipates a good number of the company’s workers will be hired by area firms.

Aviation

United bankruptcy uncertain, new chief says

United Airlines’ new chief executive characterized the carrier’s situation Wednesday as one of extreme urgency but said a bankruptcy filing is not a foregone conclusion.

Hoping to set a cooperative tone for difficult labor negotiations, Glenn Tilton paid a brief courtesy visit to the leaders of all of United’s unions.

While calling it premature to talk about specifics of a financial recovery plan on his first day of work, the new CEO made clear he doesn’t think the severe labor cuts sought by his predecessor last week were out of line.