Inventory surprise causes oil increase

NEW YORK - Oil prices bounced nearly $2 to $44 a barrel Wednesday after government and industry data showed a sharp drop last week in the nation's supply - a surprise to most traders, who expected inventories to be steady or grow slightly.

Analysts had been expecting for several days, however, to see some kind of a correction in oil markets, where prices had retreated by nearly $7 from the peak settlement of $48.70 reached Aug. 19.

The catalyst arrived Wednesday when the Energy Department reported that commercial inventories of crude fell by 4.2 million barrels to 287.1 million barrels last week.

Factory output rises again in August

NEW YORK - Manufacturing activity rose in August for the 15th consecutive month, but at a slower rate than in July, according to a monthly report released Wednesday by the Institute for Supply Management, a research group.

The institute's index for manufacturing activity stood at 59 in August, 3 points below the 62 recorded in July.

Nonetheless, the survey, together with a separate report showing that construction spending hit an all-time high in July, painted a positive picture for the economy overall and suggested that the economic expansion remained solid.

Weather affecting orange juice price

Wholesale orange-juice prices rose close to an 11-month high on concern that the second hurricane in less than a month would damage Florida citrus groves this weekend.

Orange-juice futures for November delivery rose 4.3 cents, or 5.8 percent, to 78.8 cents a pound on the New York Board of Trade, the highest closing price since Sept. 11.

Cincinnati Bell adding 6 retail stores

Cincinnati Bell Inc. is adding six retail stores to the 14 it operates in the area..

Two of the new locations: in the 580 Building, downtown, and in Middletown's Towne Mall, are now open. The other locations, to open in the next month, are at 7435 Wooster Pike, Mariemont; 5235 Deerfield Blvd., near Eastgate Mall; 123 W. Kemper Road, Forest Park; and at 1117 Sycamore St., Over-the-Rhine. The stores offer all of Cincinnati Bell's products and services.

What's demolished walkway worth?

An elevated walkway that connected downtown's Scripps Center to Cinergy Field was removed more than a year ago, but Hamilton County and Cincinnati still must figure out the walkway's value.

Hamilton County and Cincinnati filed a civil lawsuit in Hamilton County Common Pleas Court last week to determine the value of the walkway that once spanned Fort Washington Way. The walkway was removed when the county demolished Cinergy Field and opened the new Great American Ball Park.

The building's owner, 312 Walnut Limited Partnership, contends that the walkway's removal makes it more difficult to access the office tower because the lobby is above ground.

Wire/staff reports