WASHINGTON — The ending of the recession is reviving global trade, increasing U.S. imports by a record amount in July and boosting foreign demand for American goods for a third straight month.

While the job market remains a long way from recovering, first-time claims for unemployment benefits fell more than expected last week, offering some cause for optimism.

The jump in imports could be a sign that U.S. consumer spending is recovering, economists said. That's good news because such spending accounts for 70 percent of economic activity.

GM SELLING OPEL, BUT RETAINS STAKE

BERLIN — General Motors Co. will sell European unit Opel to Canadian auto parts maker Magna International and Russia's Sberbank in a deal that preserves GM's ability to develop new cars with its longtime subsidiary.

The announcement yesterday was a politically charged win for German Chancellor Angela Merkel, who saw the deal as the best chance to save jobs at a major employer less than three weeks before national elections on Sept. 27.

GM will see a 55 percent stake in Adam Opel GmbH transferred to the Canadian-Russian team but will keep 35 percent for itself, with 10 percent held by the workers. Opel had been placed in a trust with Germany holding 65 percent and GM 35 percent to keep it from being drawn into GM's restructuring under bankruptcy protection in the U.S.

P&G CUTTING PRICES TO GENERATE SALES

CINCINNATI — The world's largest consumer products maker is finding that "new and improved" is still good, but "lower price" is working better.

The Procter & Gamble Co., a bellwether of consumer spending, has shifted tactics in the chase for bargain-hunting shoppers with price cuts, promotions emphasizing value, and even a shakeup of its famed laundry business.

After watching sales drop all year as households cut spending and traded down to cheaper competitors, P&G officials said yesterday they expect sales to start bouncing back this fall because of new products, lower prices and more promotions.

GEITHNER CONFIDENT MARKET WILL RECOVER

WASHINGTON — Citing emerging financial sector stability, Treasury Secretary Timothy Geithner said yesterday a number of government rescue efforts in place since the Wall Street crisis are no longer needed and that banks will repay $50 billion in rescue funds over the next 18 months.

Geithner, testifying before a congressional watchdog panel, said the nation still has a ways to go before "true recovery takes hold." But he said improved conditions in the banking industry have prompted Treasury to begin winding down emergency support programs implemented after the collapse of Lehman Brothers last year.