The US Conference Board Leading Economic Index(LEI)  increased 0.3% January, following a 1.2% gain in December, and a 1.1% rise in November. It was the 10th straight month of rises, pointing to an economy that will keep expanding through the first half of this year.

Ataman Ozyildirim, economist at the Conference Board said: "The U.S. LEI has risen steadily for nearly a year, led by an improvement in financial markets and a manufacturing upturn. Consumer expectations and housing permits have also contributed to these gains over this period, but to a lesser extent — especially in recent months. Current economic conditions, as measured by the Conference Board Coincident Economic Index (CEI), have also improved modestly since July 2009, helped by strengthening industrial production, despite continued weakness in employment."

Ken Goldstein, another economist added:"The cumulative change in the US LEI over the past six months has been a strong 9.8%, annualized. This signals continued economic recovery at least through the spring."

Five of the ten indicators that make up the LEI increased in January. The positive contributors - - beginning with the largest positive contributor - - were the interest rate spread, the index of supplier deliveries (vendor performance), average weekly manufacturing hours, stock prices and the index of consumer expectations. The negative contributors - - beginning with the largest negative contributor - - were real money supply, average weekly initial claims for unemployment insurance (inverted), building permits, and manufacturers’ new orders for nondefense capital goods. Manufacturers’ new orders for consumer goods and materials held steady in January.

UK deficit

Figures issued today showed that the UK posted its first budget deficit for the month of January on record after government spending shot up and tax receipts dipped.

The Office for National Statistics said public sector net borrowing came in at just under £4.34 billion last month compared with a £5 billion repayment a year ago. That marked the first PSNB borrowing for a January since records began in 1993.

January is traditionally a big surplus month for the UK due to deadlines for self-assessed income tax and corporation tax.

Analysts had forecast a surplus of £2.8 billion.

“These appalling figures illustrate the scale of Labour’s debt crisis,”Philip Hammond, a Tory front bench Treasury spokesman, said in a statement. “The prime minister must now heed the advice of leading economists and business leaders and set out a credible plan to get the deficit under control, starting this year. The longer he delays, the more the recovery and our credit rating will be put at risk.”

Public Sector Statistics - Public Sector Finance, January 2010

Financial Regulator

The Financial Regulator today announced it had fined an insurance broker in relation to selling a customer a bond in financial company ISTC, which collapsed in 2008.

The customer was refunded by the insurance broker, Jim Mannion & Co, Strokestown, Co Roscommon.

ISTC, which was founded by former Anglo Irish Bank chief operations officer Tiernan O'Mahoney, was an intermediary for banks and went bust in the aftermath of the credit crunch and investors in the company lost a total of €880m. ISTC was later taken over by UK stockbroker Collins Stewart for €5m.

The Financial Regulator fined Jim Mannion & Co for the "sale of an unsuitable investment product, the Friends First ISTC Creative Bond".

The regulator said Jim Mannion & Co "failed to properly inform one customer about the investment risks and guarantee limitations associated with this bond". It was fined €5,000.

The Financial Regulator said the issue came up during an inspection of the sale of Friends First ISTC Bonds.

The Dow is up 19 points or 0.18% to 10,328.

The S&P 500 has risen 0.13% and the Nasdaq has added 0.19%. 

US producer prices rose more than expected in January as energy costs spiked in a month of very cold weather, but price increases in other sectors of the economy remained subdued.

A separate report, also from the Labor Department, showed the number of US workers filing new claims for jobless benefits jumped more than expected last week while continuing claims lasting more than one week, held steady.

The producer price index for finished goods rose a seasonally adjusted 1.4% on the month in January, the Labor Department said, after increasing an upwardly revised 0.4% in December. The December increase was previously estimated at 0.2%

However, the core PPI, which excludes volatile energy and food prices, rose 0.3% last month after remaining flat in December.

Initial claims for jobless benefits rose by 31,000 to 473,000 in the week ended Feb. 13th. The previous week's level was revised upward to 442,000 from 440,000. 

The four-week moving average, which seeks to smooth volatility in the data, fell for the week ending Feb. 13th. The Labor Department said the four-week moving average declined by 1,500 to 467,500 from the previous week's revised average of 469,000.