Leading economic indicators up, along with wholesale prices and jobless claims

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A forecast of economic activity is looking sunny, but wholesale prices and unemployment benefit claims are still rising, according to data released Thursday.

An index of leading economic indicators was up 0.3% in January, the 10th straight swell, according to the Conference Board, a private research group. The rise was influenced by improving financial markets and a steadier manufacturing sector, as well as stronger consumer expectations and an increase in housing permits.

In December, the index jumped 1.2% after increasing 1.1% in November, the group said.

But wholesale prices soared 1.4% last month, after gaining 0.4% in December and 1.5% in November. For the 12 months that ended in January, the producer price index soared 4.6% in its third consecutive year-over-year increase, according to the U.S. Bureau of Labor Statistics.

Energy prices rocketed 5.1% last month, including an 11.5% bulge in gasoline prices. Food prices were more contained, inching up 0.4%.

Excluding those volatile sectors, the core price gauge was up just 0.3%. Over the last 12 months, the core index was up 1%.

In another report, the Labor Department said that for the week that ended on Feb. 13, 473,000 people filed initial claims for unemployment benefits -- 31,000 more than the previous week.
The average over four weeks, however, was down 1,500 to 467,500 claims.

For the week that ended on Feb. 6, California had the steepest decrease (13,535) in the number of claims, followed by Pennsylvania and Florida, according to unadjusted data. Fewer layoffs in the construction industry in the state helped tamp down initial claims.

-- Tiffany Hsu