In brief

Consumer prices fall

Consumer prices in August posted the first monthly decline in nearly two years as Americans finally got some relief from surging energy prices. But the cost of food and clothing still rose last month and wages over the past year are down.

Consumer prices edged down 0.1 percent last month, the Labor Department reported Tuesday, a significant improvement from a 1.1 percent price spike in June and a 0.8 percent rise in July.

The cost of gasoline and other fuels plunged during the month, reflecting big drops in crude oil prices since they peaked at $147 per barrel in early July.

Less foreign investment

Foreign central banks cut back sharply on their purchases of Fannie Mae and Freddie Mac securities in July, a development that helped spur the U.S. government’s bailout of the mortgage giants, data released Tuesday by the Treasury Department shows.

The episode is a potent reminder of the United States’ dependence on foreign investors to fund its trade deficit, analysts said, and reflects a pivotal shift from previous government interventions.

But in July, the U.S. actually saw more foreign capital flowing out than in. Foreigners sold $25.6 billion of U.S. long-term securities, the report said, down from net purchases of $62.7 billion in June.

Tech spending mixed

Forrester Research on Tuesday raised its estimate of what U.S. companies and government agencies will spend on information technology this year. Forrester envisions the market to grow 5.4 percent, up from a May prediction of 3.4 percent growth.

But the analyst firm said growth in 2009 will be softer than expected, and weighted more toward the latter half of the year. Information-technology spending is now expected to grow by 6.1 percent next year, down from the firm’s prior forecast of a 9.4 percent increase.

Landfill gas closes store

Wal-Mart Stores Inc. has closed one of its stores in the Cleveland area built atop a landfill amid concerns about potentially explosive methane gas.

An independent contractor confirmed there is a problem with the odorless gas generated by rotting garbage, said Tara Stewart, a spokeswoman for the Bentonville, Ark.-based retailer. The closure of the store is probably permanent, she said.

New detergent plant

The maker of Arm & Hammer products and other consumer items has broken ground on a new laundry detergent production facility and distribution center in Pennsylvania.

Church & Dwight Co. officials said Tuesday the new facility is scheduled to open about 10 miles outside of York by the end of next year. It will employ at least 300 people.