FINANCIAL & BUSINESS NEWS

Last Update on February 03, 2012 18:07 GMT

ECONOMY

ARLINGTON, Va. (AP) -- President Barack Obama says the economy is growing stronger and the economic recovery is speeding up.

The Labor Department says 243,000 jobs were added in January, far more than economists expected. The unemployment rate dropped to 8.3 percent, the lowest in three years.

Obama called the report good news, but he says there are still too many Americans looking for work. He also warned that the unemployment rate could still seesaw in the coming months.

In other upbeat economic news, a trade group says the service industry grew last month at the fastest pace in a year. The Institute for Supply Management says its index jumped to 56.8 percent in January from 53 percent in December. Any reading above 50 indicates expansion.

And, the Commerce Department says orders to U.S. factories rose in December, capping off another strong year for manufacturing. Orders were up 1.1 percent for the month and 12.1 percent for the year.

VETS-JOBS PROGRAM

ARLINGTON, Va. (AP) -- President Barack Obama is proposing a way to help veterans become firefighters, cops and park rangers.

Visiting a fire station in suburban Washington today, Obama said veterans who have risked their lives defending America should get the opportunity to rebuild America when they return from deployment.

The president expanded on plans in his State of the Union address. Obama wants federal help for communities that make it a priority to recruit veterans, and connect veterans with jobs rebuilding local communities and national parks.

He says he wants to do all he can to make sure troops come home to new jobs and opportunities.

OIL PRICES

NEW YORK (AP) -- A drop in the number of Americans out of work is causing oil prices to rise. More people working means more people are driving to work.

Benchmark crude added 76 cents to $97.12 per barrel in New York, while Brent crude added $1.54 to $113.61 per barrel in London.

At the pump, gasoline prices are up about 1 cent to a national average of $3.47 per gallon. A gallon of regular unleaded is nearly 18 cents higher than it was a month ago and 35 cents higher than it was this time last year.

EUROPE-GAS SUPPLIES

BRUSSELS (AP) -- The European Union is bracing for another potential energy crisis in the dead of winter.

The problem is that Russian gas supplies to some member states have suddenly dwindled by up to 30 percent.

The European Commission is putting its gas coordination committee on alert, but insists the situation had not yet reached an emergency level. Nations have pledged to help each other if needed and storage facilities have been upgraded.

Commission spokeswoman Marlene Holzner says Russia is going through an extremely cold spell and needs more gas to keep its citizens warm. Temperatures have dipped to minus 30 Fahrenheit in Russia.

Moscow has blamed Ukraine for the shortages, saying Kiev is siphoning off more than its share. Authorities in Ukraine have denied the accusation.

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