Unemployment climbs, consumption slows

The number of U.S. workers filing new claims for unemployment benefits rose in late January to its highest level since October 2005, the Department of Labor reported today. The uptick comes after four straight weeks of declines in claims. The Department of Labor said initial claims for the week ending Jan. 26 was 375,000, up 23% from the 306,000 reported on Jan. 19 and up 2% from the year-ago period. The four-week moving average was 325,750, a rise of 3% from the 315,000 reported a week earlier. Consumer spending rose for the month, but at a slower rate than the increase reported in November, The Department of Commerce reported. The Commerce Department reported a 0.2% increase in nominal consumer spending in December, the smallest jump since spending fell 0.1% in September 2006. Spending on durable goods fell 0.5%.