Manufacturing data boosts hopes of rebound

WASHINGTON -- Brighter news on manufacturing is offering more hope that the longest recession since World War II is near an end. But with construction and many other segments of the economy still weak and unemployment rising, any rebound likely will be slow.

A key gauge of manufacturing showed Wednesday that industry activity declined less than expected in June. The Institute of Supply Management's manufacturing index posted a 44.8 -- the best showing since last August, a month before the financial crisis erupted with force.

Manufacturing sectors overseas also signaled a bit of a rebound, though other U.S. economic news was more mixed. Ford Motor Co. reported the smallest sales decline of the year in June, but sales at struggling Chrysler Group LLC continued to plunge.

Outside of manufacturing, construction spending fell in May for the seventh time in the past eight months. Spending dropped more than expected as strength in nonresidential building was eclipsed by a decline in housing construction and weakness in government projects. But in a hint of better days to come, the National Association of Realtors said an index of pending home sales edged up 0.1 percent in May.

ICE launches workplace immigration crackdown

WASHINGTON -- The Obama administration launched investigations of hundreds of businesses around the country Wednesday as part of its strategy to focus immigration enforcement on the employers who hire illegal workers.

Immigration and Customs Enforcement has begun notifying businesses of plans to audit their I-9 forms -- employment eligibility documents that employers fill out for every worker -- the agency told members of Congress in an e-mail Wednesday.

Immigration officers served "Notices of Inspection" to 652 businesses, the Homeland Security Department said. By comparison, 503 such notices were issued to businesses last year, the agency said. Businesses were chosen for inspections based on leads and other investigative work, Immigration and Customs Enforcement said.

Employers are required to keep the I-9 forms and must check the authenticity of documents provided by the employee. The Homeland Security Department said it would not release the names or locations of the businesses that are being audited because of the ongoing investigations.

FDA requires Chantix, Zyban to have warning

NEW YORK -- The Food and Drug Administration will require two smoking-cessation drugs, Chantix and Zyban, to carry the agency's strongest safety warning over side effects including depression and suicidal thoughts.

The new requirement, called a "Black Box" warning, is based on reports of people experiencing unusual changes in behavior, becoming depressed, or having suicidal thoughts while taking the drugs.

The antidepressant Wellbutrin, which has the same active ingredient as GlaxoSmithKline PLC's Zyban, already carries such a warning.

The FDA is also requiring an additional study on Chantix and Zyban to determine the extent of the side effects. Pfizer Inc., which makes Chantix, said it is still discussing the potential study design with the FDA. The study could include patients with and without psychiatric conditions to determine the true incidence rate of psychological side effects, Pfizer officials said.

Pfizer had already updated its labeling following the beginning of an FDA investigation into the potential side effects in 2007. That investigation was sparked by reports of about 37 suicides and more than 400 of suicidal behavior in connection with the drug.