Dec Empire State index at highest level since May (by Greg Robb)

WASHINGTON (MarketWatch) - The Empire State manufacturing index rose in December to its highest level in seven months, the New York Federal Reserve Bank said Thursday. The Empire state index rose to 9.5 in December from 0.6 in November. The index had been at or below zero since June. The size of the gain in December surprised analysts. Economists polled by MarketWatch expected the index to rise to 3.0 in December. Underlying conditions were mainly strong. The new orders index rose to 5.1 in December from negative 2.1 in November. The employment indexes were mixed. The index for the number of employees rose to 2.3 in December from a negative 3.7 in November but the average workweek fell to negative 2.3 from 2.4 in the prior month. A reading of expected conditions six-months ahead climbed sharply in December to its highest reading since May.

U.S. wholesale prices rise 0.3% in November (by Jeffry Bartash)

WASHINGTON (MarketWatch) - U.S. wholesale costs climbed 0.3% in November as the price of food increased, mostly for vegetables and chicken, the Labor Department said Thursday. Economists surveyed by MarketWatch had predicted a 0.1% rise. The increase was driven by higher food prices, which rose 1.0% last month. Energy costs rose a scant 0.1% after falling 1.4% in October. Minus the food and energy categories, so-called core wholesale prices rose 0.1%. Economists were expecting a 0.2% increase in the core rate. Over the past 12 months, wholesale prices have risen 5.7%. That's the smallest year-over-year increase since March. Core prices have climbed a lesser 2.9% in the past 12 months, the lowest increase since June 2009. Intermediate prices, meanwhile, rose 0.2% last month while crude prices jumped 3.8%. The core intermediate index, an indicator of future inflation, fell 0.4% in November.

Weekly U.S. jobless claims fall 19,000 to 366,000 (by Jeffry Bartash)

WASHINGTON (MarketWatch) - The number of Americans who filed requests for jobless benefits fell by 19,000 last week to a seasonally adjusted 366,000, putting claims at the lowest level since May 2008. Claims from two weeks ago were revised up to 385,000 from 381,000. Economists surveyed by MarketWatch had projected that claims would rise to 390,000 in the week ended Dec. 10. Jobless claims have fallen below 400,000 - a level historically associated with an improving labor market - in five of the past six weeks. The average of new claims over the past month, meanwhile, fell by 6,500 to 387,750 to the lowest level since July 2008. The Labor Department said continuing claims rose by 4,000 to a seasonally adjusted 3.60 million in the week ended Dec. 3. About 7.45 million people received some kind of state or federal benefit in the week ended Nov. 26, up 874,670 from the prior week.

Industrial production drops 0.2% in November (by Steve Goldstein)

WASHINGTON (MarketWatch) -- Industrial production declined 0.2% in November, dragged lower by a sharp 3.4% reduction in the output of motor vehicles and parts, the Federal Reserve said Thursday. Economists polled by MarketWatch had forecast a flat reading after a 0.7% gain in October. Even excluding autos, manufacturing output fell 0.2%. While October data was unrevised, readings from June, August and September were revised higher while July's was revised lower. Compared to November 2010, industrial production was 3.7% higher. Capacity utilization fell to 77.8% in November from an upwardly revised 78.0% in October; utilization has clung to a narrow 0.5% band since July.

Philly manufacturing activity picks up in Dec. (by Greg Robb)

WASHINGTON (MarketWatch) - Manufacturing in the Philadelphia region continued to improve in December, the Federal Reserve Bank of Philadelphia reported Thursday. The Philly Fed diffusion index rose to 10.3 in December from 3.6 in November. This is the highest level since April. Readings above zero indicate expansion. The increase was larger than expected. Economists were expecting the index to improve to 5.0. The details of the report were generally stronger ex except for employment data. The new orders index rose to 9.7 from 1.3, while the shipments index fell to 6.7 from 7.3. The index for number of employees slipped to 10.7 in December from 12.0 in the prior month. The average workweek dropped to 2.5 from 11.0.