May jobless rate down from 2014 in Spokane

State economists reported a 6.3 percent May unemployment rate for Spokane County, down a bit from May 2014.

The region has been adding jobs for many months, though not at the rapid clip of King County, which posted a 3.8 percent May unemployment rate. The state was at 5.3 percent.

The Spokane jobless rate was up from April, as it was in both King County and the state, according to data from the state Employment Security Department.

In comparing May 2014 against May 2015, there are more jobs and fewer people without work this year in Spokane.

Netflix to execute 7-for-1 stock split

SAN FRANCISCO – Netflix will execute a seven-for-one stock split next month in a widely anticipated move designed to make the Internet video service’s shares more affordable to a bigger pool of investors.

The split has been expected since Netflix stockholders voted two weeks ago to authorize the Los Gatos, California, company to substantially increase the number of its outstanding shares. Netflix Inc. hadn’t specified the size or timing of the split until Tuesday.

The split will award six additional shares for every share held by Netflix stockholders as of July 2.

When the split occurs July 14, the price of Netflix’s stock will drop sharply to account for the issuance of the additional shares. The company’s market value, which currently stands at about $41 billion, won’t be affected by the split.

Although many analysts deride splits as a gimmick, the maneuver often gets people more excited about a stock. Some investors like the idea of being able to buy more shares at a lower price following the split. Others view a stock selling at a lower price as a better bargain, even though the company’s market value remains the same.

Employment growth lifts sales of new homes

WASHINGTON – Purchases of new U.S. homes surged in the Northeast and West in May, as steady job growth over the past year has lifted the real estate sector.

The Commerce Department said Tuesday that new-home sales rose 2.2 percent last month to a seasonally adjusted annual rate of 546,000, the strongest pace since February 2008.

Last month’s sales gains were concentrated in the Northeast, where sales jumped 87.5 percent, a likely unsustainable rise that might reflect pent-up demand following an unusually harsh winter. New-home sales increased 13.1 percent in the West, but slipped in the Midwest and South.

The median sales price has fallen slightly, dipping 1 percent over the past 12 months to $282,800.

Durable goods orders down 1.8 percent in May

WASHINGTON – Orders to U.S. factories for long-lasting manufactured goods fell in May, pulled down by a sharp drop in demand for aircraft. But a category that reflects business investment rose last month, a hopeful sign for manufacturing.

The Commerce Department said Tuesday that total orders for durable goods dropped 1.8 percent in May after falling 1.5 percent in April.

Last month’s drop was caused in part by a 35.3 percent plunge in orders for aircraft, which is often a volatile category.

Excluding transportation, orders rose 0.5 percent.

American factories have struggled this year in part because a strong dollar has made U.S. goods more expensive overseas.