Business news in brief

The number of people requesting unemployment benefits declined for the second straight week, suggesting that the slowing economy isn't prompting widespread job cuts. The Labor Department said new claims for unemployment aid fell last week by 6,000 to a seasonally adjusted 472,000. Economists had expected a slight increase, according to a survey by Thomson Reuters. The four-week average of claims, a less-volatile measure, fell by 2,500 to 485,500, its first decrease after four straight increases. - AP

Mortgage rates fall to 4.32 percent

Mortgage rates fell to the lowest level in decades for the 10th time in 11 weeks, as investors worried about the economy. The average rate for a 30-year fixed loan was 4.32 percent this week, down from 4.36 percent last week, mortgage buyer Freddie Mac said. That's the lowest since Freddie Mac began tracking rates in 1971. Rates on one-year adjustable-rate mortgages fell to an average rate of 3.50 percent from 3.52 percent. - AP

Productivity falls, labor costs up

American companies experienced the largest drop in workplace productivity this spring in nearly four years and a rise in labor costs, suggesting businesses may no longer be able to squeeze more work out of leaner staffs. Productivity dropped at an annual rate of 1.8 percent in the April-to-June quarter, the Labor Department said. That's double the 0.9 percent decline originally reported a month ago. Unit labor costs rose 1.1 percent, the biggest rise in labor costs since late 2008 and up from the estimate last month of 0.2 percent. While lower productivity and higher labor costs could spell trouble for corporate profits, they could translate into more hiring and larger incomes for U.S. workers. - AP

July factory orders rise 0.1 percent

Orders to U.S. factories managed a slight gain in July as a surge in demand for commercial aircraft helped offset widespread weakness in other areas. Factory orders edged up 0.1 percent, the first increase after two months of declines, the Commerce Department reported. But the strength came in the volatile transportation sector. Excluding transportation, orders were down 1.5 percent, the biggest drop in this category in 16 months. - AP