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U.S. markets mixed Thursday morning

NEW YORK, Aug. 14 (UPI) -- Major U.S. stock indexes were mixed Thursday after the U.S. government reported prices had surged 0.8 percent in July.

Prices gained sharply with energy costs up 4 percent, including a 7.4 percent jump in natural gas prices and a 4.1 percent jump in gasoline prices.

The U.S. Labor Department reported a slight decline in first-time applications for unemployment benefits, down 10,000 from the previous week to 450,000.

In midmorning trading Thursday, the Dow Jones industrial average was down 6.83 points, or 0.06 percent, to 11,526.13. The Nasdaq composite index rose 0.24 percent, gaining 5.78 points to reach 2,434.40. The Standard and Poor's 500 lost 2.71 points, or 0.21 percent, to 1,283.12.

The 10-year U.S. Treasury note rose 10/32 to yield 3.903 percent.

In Tokyo, the Nikkei average lost 66.25 points to 12,956.80, down 0.51 percent.

CPI increases 0.8 percent in July

WASHINGTON, Aug. 14 (UPI) -- The rate of rising U.S. consumer prices slowed in July from from a month ago but still came in double the rate economists had forecast, the government said.

The Consumer Price Index rose 1.1 percent in June and slowed to 0.8 percent in July. Economists had predicted prices in July would rise 0.4 percent.

Energy prices continued to push the inflation rate, gaining 4 percent in the month after a 6.6-percent jump in June.

Natural gas prices pushed up 7.4 percent in July, while gasoline costs rose 4.1 percent. Analysts expect the recent six-week drop in crude oil prices won't show up in the inflation figures until August.

Food prices gained 0.9 percent in July, slightly faster than June's hike of 0.8 percent.

Core inflation, which excludes food and energy prices, rose 0.3, equal to June's rate. In the core figure, apparel rose 1.2 percent, medical care 0.1 percent and transportation 1.7 percent.

Recession risk looms in Britain

LONDON, Aug. 14 (UPI) -- The governor of the Bank of England said there were signs the British economy could fall into a recession by the end of the year.

"There is a possibility of a quarter or two of negative growth," said bank Gov. Mervyn King, The Times of London reported Thursday.

"The next year will be a difficult one, with inflation high and output broadly flat," King said.

The British economy is reeling from falling house values and a government report this week said 20,100 jobs had been lost in July, pushing the unemployment rate to 5.4 percent.

King said inflation could hit 5 percent during the year. Slow growth and high inflation together describes a condition known as "stagflation," The Times reported.

The country's current credit crunch was "the biggest financial dislocation since the second world war," King said.

The bank's forecast the economy would grow 1.5 percent this year, and fall to a 0.75 percent in 2009. But, there are risks the economy could slow further, The Times reported.

Poll: U.S. industries earn poor marks

PRINCETON, N.J., Aug. 14 (UPI) -- An annual poll that measures the way U.S. adults say they feel about U.S. industries indicated sharp declines this year.

In the Gallup poll conducted every year since 2001, 10-point declines in an industry's rating have been rare, Gallup said. This year six industries out of 25 declined by 10 points and the automotive industry came close, dropping by 9 points, Gallup said.

The real estate industry dropped 18 points this year, the biggest one-year drop for any industry since the poll began, Gallup said.

The poll gave gas and oil the lowest net positive score at minus 61, followed by federal government at minus 42, real estate at minus 41 and the airline industry at minus 34.

The computer industry earned the highest score with a net positive rating of 50, followed by restaurants at 39 and agriculture and the Internet, both at 31, Gallup said.

"Clearly, the issues plaguing the economy are affecting the way Americans view a variety of industries," Gallup said.

The results of the poll were based on 510 telephone interviews conducted Aug. 7-10. the poll carries a margin of error of 5 percentage points, Gallup said.