US jobless claims up, regional factory activity dips

WASHINGTON, Jan 21 (Reuters) - The number of U.S. workers applying for new unemployment benefits unexpectedly rose last week and regional manufacturing activity slipped in January, hinting at some slowing in the pace of economic recovery.

The Labor Department said on Thursday initial claims for state unemployment benefits rose 36,000 to 482,000 last week as a backlog of applications from the holidays was processed. It was the third straight week that claims rose.

Analysts had expected new claims to slip to 440,000.

Separately, the Philadelphia Federal Reserve Bank said its business activity index, which measures factory activity in the Mid-Atlantic region, fell to a reading of 15.2 this month on a drop in orders. The index hit a 4-1/2-year high of 22.5 in December.

Markets had expected the index for January to come in at 18.0. A reading above zero indicates growth in the region's manufacturing sector.

But a report from the Conference Board, a business research group, gave a robust view of the economy as its index of leading economic indicators rose 1.1 percent to an all-time high of 106.4 last month. Analysts polled by Reuters had forecast the indicator, which is a gauge of the economic prospects, rising by only 0.7 percent.

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