INSTANT VIEW: Jobless claims tick up; NY manufacturing weakens

NEW YORK (Reuters) - The number of U.S. workers filing claims for initial jobless benefits increased slightly more than expected in the latest week, a government report showed on Thursday.

EMPIRE STATE MANUFACTURING:

A gauge of manufacturing in New York State fell in May, the New York Federal Reserve said in a report on Thursday, sliding into contractionary territory even though its measure of inflation hit a record high.

KEY POINTS:

JOBLESS CLAIMS: * First-time jobless claims rose to 371,000 in the week ended May 10, from 365,000 for the prior week. Economists surveyed by Reuters had forecast the number of new claims at 370,000. * The four-week moving average of new claims, considered by economists a more reliable gauge of labor trends because it irons out weekly volatility, fell to 365,750 in the week ended May 10 from 366,750 in the prior week. * The number of people who remained on the benefit rolls after drawing an initial week of aid increased 28,000 to 3.06 million in the week ended May 3, the latest period for which figures were available. * It was the third consecutive week that continued claims were above 3.0 million and also the highest since March 2004.

EMPIRE MANUFACTURING: * The New York Fed's "Empire State" general business conditions index fell to minus 3.23 in May from positive 0.63 in April. * The result was below economists' expectations for a reading of 0.0 in May. * The prices paid measure of inflation rose to 69.57 -- the highest since the start of the data series in July 2001. In April it was 57.29. * The survey of manufacturing plants in the state is one of the earliest monthly guideposts to U.S. factory conditions.

COMMENTS:

SEAN MURPHY, TREASURIES TRADER, RBC CAPITAL MARKETS, NEW YORK: