US businesses stockpiling more

  • Associated Press November 14, 2012

WASHINGTON — U.S. businesses increased their stockpiles in September, further evidence that economic growth was stronger over the summer than first thought.

The Commerce Department says inventories grew 0.7 percent in September, after a 0.6 percent increase in August.

Retailers, manufacturers and wholesale distributors all boosted their stockpiles. Their sales rose 1.4 percent in September— the most in more than a year.

Companies typically increase their stockpiles when they anticipate sales will rise in coming months. Faster restocking helps drive economic growth. When businesses order more goods, it usually leads to more factory production.

Still, a separate report shows retail sales dropped in October. That suggests companies will have to cut back on rebuilding their stockpiles in the final three months of this year, which could slow economic growth.


blog comments powered by Disqus

Cyber Monday sales still on top, but losing some luster

Fed moves to bar bailouts of failing firms

Pending homes sales edge up in October

PA Mug Co. owner moves to new studio space in Waynesburg

On the money: Making sure green home upgrades pay off

Dakota city that grew on fracking reaching out for more retail

Super Bowl of shopping unfolds

Coat giveaway better than any Black Friday sale

Orders for U.S. durable goods rise strong 3 percent in October

Applications for U.S. unemployment benefits fall to 260,000