WASHINGTON — The number of Americans filing new claims for unemployment benefits fell sharply last week and a gauge of factory activity hit an eight-month high in early November, hinting at some strength in the economy. þþOther data released on Thursday showed that wholesale prices fell for a second month in October, the latest sign of a lack of inflation pressure, giving the Federal Reserve some leeway as it considers when to begin tapering its bond-buying program. þþInitial claims for state unemployment benefits fell 21,000 to a seasonally adjusted 323,000, the Labor Department said. Economists had forecast a drop in the newly jobless to just 335,000, and some said that the Veterans Day holiday last week could have contributed to some of the decline. þþBut the department said no special factors affected the data, which covered the survey period for the government’s report on employment in November. þþA four-week moving average of jobless claims meant to iron out week-to-week volatility fell 6,750 to 338,500. þþSeparately, a survey of factory purchasing managers showed activity picking up. Markit, a financial data firm, said its preliminary manufacturing purchasing managers index rose to an eight-month high of 54.3 from 51.8 in October. þþDespite the improving growth picture, inflation remains virtually absent. The Labor Department said its producer price index slipped 0.2 percent last month as gasoline prices fell, the largest decline since April. þþExcluding volatile food and energy costs, producer prices rose 0.2 percent, bolstered by the introduction of new motor vehicle models. Excluding cars and trucks, the core producer price index was up only 0.1 percent. þþOver the last 12 months, overall producer prices have risen just 0.3 percent, with core prices up 1.4 percent. þþThe data followed a report on Wednesday that showed consumer price inflation easing to a four-year low of 1 percent. þ
Source: NY Times
