Indicators Positive, Except for Import Prices

The U.S. economy proved its strength with data showing solid wholesale sales and little change in jobless numbers. On the negative side, rising import prices heightened the risk of inflation. The Commerce Department said a strong automobile market helped sales by U.S. wholesalers rise 0.7% in October to a seasonally adjusted $232.8 billion, following a gain of 0.6% in September. The Labor Department, meanwhile, said the number of Americans applying for new state unemployment benefits rose a scant 1,000 in the week ended Dec. 4, to total 293,000, the ninth straight week that initial claims were below 300,000. Import prices rose for the fifth straight month in November, by 0.5%, as oil prices continued to climb, the Labor Department reported. Even excluding oil prices, which were up 95.2% year-over-year, November import prices rose 0.3%, the largest gain since 0.4% in September 1996.