Changing localhost to 127.0.0.1 did solve the issue. Thank you.
WordPress version 4.1.1
BackWPup version 3.1.4 Get pro.
PHP version 5.5.1
MySQL version 5.5.37-cll-lve
cURL version 7.19.7
cURL SSL version NSS/3.15.3
The usual: Localhost, UTF-8, nothing in db_collate, no weird db names or special characters.
I have wordpress installs with other hosting companies and I never encountered this before. Not quite sure what version of PHP they are running.