Businesses anticipate consumer spending to grow and are building up their stockpiles as their sales improve. Both retailers and wholesalers increased their stockpiles in order to help growth in the October-December quarter.
WASHINGTON (AP) — U.S. companies continued to build up their stockpiles in November as their sales improved, a sign that businesses believe consumers will increase spending in the months ahead.
The Commerce Department says business stockpiles grew 0.4% in November. That follows a strong 0.8% gain in October. Sales increased 0.8% in November after a 0.5% gain the previous month.
Rising stockpiles should help keep growth solid in the October-December quarter. Several economists project growth at a 3% annual rate in that period after a 4.1% rate in the previous quarter. Greater restocking boosts growth because it requires more factory production.
Retailers led much of the gains in inventories ahead of the holiday shopping season. Wholesalers also increased their stockpiles. Stockpiling by manufacturers was flat.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
For more information about Front Street Commercial Real Estate Group, click here...