Briefcase

U.S. imposes quotas on Chinese clothing

The Bush administration announced late Friday that it had decided to re-impose quotas on three categories of clothing imports from China, responding to pleas from domestic producers that a surge of Chinese imports was threatening thousands of U.S. jobs.

The administration action will impose limits on the amount of cotton trousers, cotton knit shirts and underwear that China can ship to this country, a step that American retailers contend will drive up prices for U.S. consumers.

The action will mean that shipments in the three categories will be permitted to increase this year by just 7.5 percent, compared to shipments over a 12-month base period.

Economy

Business inventories, sales rise in March

American businesses increased inventories by 0.4 percent in March as total sales accelerated sharply following a February setback, the Commerce Department reported Friday.

The March increase in the total amount of goods held on shelves and back lots followed a 0.5 percent gain in February. However, a portion of the inventory growth reflected an unwanted accumulation as sales fell a sharp 0.5 percent during February.

In March sales at all levels of business rebounded 0.7 percent.

Survey

Consumer confidence slips this month

Americans’ confidence in the economy slipped in May despite other indications consumers haven’t been cowed by rising energy prices.

The University of Michigan’s mid-month index on consumer sentiment for May was said to have shown a decrease to 85.3 from 87.7 in April.

The Michigan index, which is based on a telephone survey of about 250 households, was expected to hit 88.0 for mid-May, according to a survey conducted by Dow Jones Newswires.

The mid-May consumer expectations index, which gauges opinions about the near future, was said to have fallen to 73.7 from 77.0 in April.

Beverages

Winemaker poised for distiller bid

Constellation Brands Inc., which quietly became the world’s largest winemaker two years ago, took another step Friday in challenging a $13.7 billion bid by France’s Pernod Ricard SA for Allied Domecq PLC, the world’s No. 2 distiller.

Constellation, the only beer, wine and spirits company based in the United States, is teaming up with three partners to try to buy Allied, the British liquor company behind Beefeater gin and Stolichnaya vodka.

The consortium led by Fairport, N.Y.-based Constellation “has made a preliminary approach to Allied Domecq but there’s no certainty that this preliminary approach will lead to an offer,” the company said in a statement.

The company declined to reveal the value of its planned offer but analysts said they expected it would top $14 billion.