Index of leading economic indicators rises slightly

The economy took a bit of a breather last month as a popular index of leading indicators gained 0.3% in January, its slowest growth in several months.

Improving financial markets, a steadier manufacturing sector, an increase in housing permits and stronger consumer expectations spurred the Conference Board’s index of leading economic indicators to its 10th straight monthly increase.

The slowdown follows December’s 1.2% increase and November’s 1.1% gain, the group said. The index is designed to forecast activity in the next three to six months.

Separately, the Labor Department reported that 473,000 people filed initial claims for unemployment benefits last week -- 31,000 more than the previous week. The average over four weeks, however, was down 1,500 to 467,500 claims.

Many economists say the four-week average needs to fall below 425,000 consistently to indicate that the economy is close to generating net job growth.

For the week of Jan. 31, 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.

Meanwhile, the U.S. Bureau of Labor Statistics said that wholesale prices rose 1.4% last month, after gaining 0.4% in December and 1.5% in November. For the 12-month period, the producer price index soared 4.6% in its third consecutive year-over-year increase.

Energy prices rocketed 5.1% last month, including an 11.5% surge 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%.

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