India's information-technology industry is losing steam. The credit crunch and spending slowdown in the U.S. are hurting the companies' biggest market, while a cheaper dollar shrinks their profits. Competition is rising from other low-cost nations.

Producer prices surged last month to their highest annual rate in 27 years, showing inflation is still running high even as the U.S. economy slows. Most Fed officials are betting inflation will moderate in coming months, but some policy makers remain uneasy about price increases spreading through the economy.

Paulson said that China is moving in the "right direction" on its currency reform efforts even though some U.S. lawmakers are probably dissatisfied.

The Bank of Japan held interest rates steady but downgraded its assessment of the domestic economy, describing it as "sluggish" for the first time in 10 years.

German investor sentiment improved in August on declining oil prices and a weaker euro, the ZEW survey showed.

Tropical Storm Fay could be another economic blow for Florida, which already is straining to cope with the housing crisis and broader financial downturn. Florida officials insisted they are much better prepared than in 2004.

In baking heat and a cooling economy, Japan's convenience stores are thriving as depressed consumers stock up on cigarettes and ice-cold drinks.

The growth in labor costs picked up in the first quarter, the OECD said, a trend likely to concern central banks.

France aims to present a plan on how to prevent the euro zone from falling into recession at next month's meeting of EU finance ministers.

German engineering union IG Metall plans to demand inflation-busting wage increases during fall talks that will affect 3.6 million workers.

Singapore's non-oil exports unexpectedly contracted in July as its shipments to the U.S. fell at the fastest pace since late 2001.

A sharp drop in commodity prices is raising hopes that inflation is peaking in many parts of the developing world, especially in Asia, providing welcome relief for the fragile global economy.

The dollar marched higher again, continuing a development that could ease inflationary pressures but also could slow an export boom. The rally is a sign of weakness in other economies and closely tied to declines in commodity prices.

Economists say Japan's economic downturn likely won't be too sharp -- but could take a long time to recover. Projections indicate the country could avoid a recession, but is on course for anemic growth in 2008.

Hong Kong's economic growth slowed more quickly than expected in the second quarter, showing its first quarter-to-quarter decline in five years as the effects of financial problems elsewhere spilled into the territory.

The dollar's rise should help quell domestic inflation by making imports and commodities cheaper. But it could hurt multinational companies like Coca-Cola.

OPEC could decide to roll over or cut crude oil production from existing levels when the group meets in early September in Vienna, Iran's OPEC governor said.

Just how bad will Japan's economic downturn be? Economists say it likely won't be too sharp -- but might carry on for a while.

A pickup in China's investment growth in July is likely to help offset the effect of weakening external demand and keep economic growth steady, one of the policy tasks Beijing recently set for itself.

U.S. industrial production slowed in July to 0.2% growth, pulled back by a drop in output at utilities as the weather turned fairer.