New jobless claims surge unexpectedly, producer prices up

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Reuters, via Yahoo!:



Jobs, prices data flag hurdles for economy
32 mins ago


WASHINGTON (Reuters) – The number of U.S. workers filing new applications for unemployment insurance unexpectedly surged last week, while producer prices increased sharply in January, raising potential hurdles for the economic recovery.

Initial claims for state unemployment benefits increased 31,000 to 473,000, the Labor Department said on Thursday. That compared to market expectations for 430,000.

Another report from the department showed prices paid at the farm and factory gate rose a faster than expected 1.4 percent from December after a 0.4 percent gain in December, as higher gasoline prices and unusually cold temperatures helped boost energy costs.

"When you have PPI moving up and still no progress in the jobs situation, that doesn't bode well for continued improvement in equity prices," said Alan Lancz, president at Alan B. Lancz & Associates Inc in Toledo, Ohio. ..........(more)

The complete piece is at: http://news.yahoo.com/s/nm/20100218/bs_nm/us_usa_economy