Jobless Claims Rise, Inventories Grow

Jobless Claims Rise, Inventories Grow

WASHINGTON (Reuters) - The number of American workers filing for first-time jobless benefits rose unexpectedly last week while inventories at U.S. wholesalers grew in January, government reports showed on Thursday.

First-time jobless claims rose 17,000 to 327,000 last week from 310,000 the prior week, the Labor Department said. Claims hit their highest level in two months and came in above Wall Street economists' forecasts for an unchanged reading of 310,000.
Click to expand...

Most economists brushed off the rise in jobless claims, saying it did not change an overall favorable trend for the labor market. A Labor Department analyst said there were no special factors behind the sharp increase in jobless claims.

The closely watched four-week moving average -- seen by economists as a truer reflection of the labor market than the more volatile weekly figure -- rose for the first time in five weeks, to 312,500 from 306,750 the previous week.
Click to expand...

In a separate report, the Commerce Department said inventories at U.S. wholesalers rose a larger-than-expected 1.1 percent in January, led by gains in automobiles and parts and other durable goods, while sales slowed from December's pace.

Wall Street economists had expected wholesale inventories to rise 0.6 percent in January. December's inventory gain was essentially unchanged from the 0.4 percent increase initially reported.

Inventories of durable goods -- big-ticket items meant to last three years or more -- rose 1.3 percent in January. Stockpiles of autos and auto parts climbed 2.2 percent after falling 1.2 percent in December.

U.S. Treasury bond prices got some relief from the unexpected jump in applications for unemployment benefits, but were hard-pressed to reverse much of this week's heavy losses.
Click to expand...