U.S. SERVICE FIRMS expanded at a healthy pace in September, although it was slightly below August's record pace. The Institute for Supply Management reported Friday that its service index dipped to 58.6 last month, down from a reading of 59.6 in August, which was the strongest level recorded since the measure was introduced in January 2008. Any reading above 50 signals growth. Hiring at service firms, where most Americans work, rose for a seventh straight month. Hiring at service firms, where most Americans work, rose for a seventh straight month in August.
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GENERAL MOTORS is recalling 290,107 Cadillac SRX crossover vehicles from the 2010 to 2015 model years and 2011-2012 Saab 9-4X crossovers because "improper torquing could possibly result in a loose joint and worn threads that could cause the toe adjuster link to separate." In another recall, GM said it would fix 89,294 units of the 2013-15 Chevrolet Spark minicar in the U.S. "because corrosion can cause the secondary hood latch striker to stick in the open position. If the primary latch is not engaged, the hood could open unexpectedly."
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AMERICAN AIRLINES is further shrinking regional subsidiary Envoy Air, formerly called American Eagle, by shifting some of its Miami flights to operators with bigger planes. Envoy said Friday that after Dec. 18, it will fly 37 daily departures for American in Miami with 12 planes, down from the current 60 departures and 23 planes. Envoy will cut about 50 jobs and lose its hangar space in Miami, but American will move some maintenance work on large jets there.
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RADIOSHACK, which warned last month that it may need to file for Chapter 11 bankruptcy protection, has signed deals with a group of investors including Standard General LP to restructure part of its debt and access funds. The investors have acquired a credit line that GE Capital had extended to RadioShack. The retailer expects it will be able to draw on that $120 million in credit to buy inventory ahead of the holiday shopping season.
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U.S. TRADE DEFICIT IN AUGUST, the fourth straight monthly decline, as exports increased 0.2 percent to a record $198.5 billion, while imports rose 0.1 percent to $238.6 billion