Economic reports contain ominous signs

Manufacturing barely grew and consumers trimmed spending amid worries about a possible war.

The disappointing reports Monday highlighted the economy’s struggles to get back on surer footing as businesses and consumers turn more cautious in the face of geopolitical uncertainties, a turbulent stock market and rising energy prices.

The Institute for Supply Management’s index of manufacturing activity fell to 50.5 in February, a marked deterioration from January’s reading of 53.9. A level above 50 indicates the manufacturing sector is expanding; below 50 means it’s contracting.

Investigation: Former Imclone leader pleads guilty to fraud

ImClone Systems founder Samuel Waksal pleaded guilty Monday to conspiracy and wire fraud, admitting that he avoided paying $1.2 million in taxes for nine paintings he purchased in the past three years.

Waksal, a friend of Martha Stewart, has already pleaded guilty in an insider-trading scandal. Waksal remains free on bail.

Waksal attorney Mark Pomerantz said his client has talked with the government about “securities trading conduct by other people” but stressed that he did not mean to imply Waksal had spoken about Stewart. Investigators are probing Stewart’s 2001 sale of ImClone shares.

Missouri: Branson to build $300 million center

Developers and city officials in Branson, Mo., have agreed to move forward on a $300 million entertainment, retail and convention center project.

The project, which will be completed by 2005, will be built on the shores of Lake Taneycomo. Officials with HCW Development said the project will be similar in scope to San Antonio’s Riverwalk development.

It will include a hotel, a 220,000-square foot convention center and a 90,000-square foot aquarium.

Earnings: Pearson profits rise

The parent company of Lawrence employer NCS Pearson announced Monday that its profits for 2002 increased by 36 percent.

London-based Pearson said its pre-tax earnings rose to $627 million during the fiscal year. The company’s Lawrence operations are part of its Pearson Education division. It also produced strong earnings growth.

The division posted profits of $148 million during the fiscal year, up 46 percent from a year ago.