Business Inventories Flat in March; Sales Down Sharply
U.S. business inventories were unchanged in March for a second straight month, while business sales fell the most since June.
U.S. business inventories were unchanged in March for a second straight month, while business sales fell the most since June.
The 0.7% increase in business inventories in October was less than expected, but it still represents the ninth straight monthly rise. The best news: Sales are rising at a slightly faster pace than inventories, so more growth via restocking is likely.
In a sign that holiday sales season will be better than initially expected, business inventories rose 0.9% in September as companies re-stocked their shelves for the nation's busiest shopping period. The increase also suggests that third-quarter U.S. GDP growth figures may be revised upward.
Decent retail sales prompted businesses to restock shelves and warehouses, as inventories rose a better-than-expected 0.6% in August. Meanwhile, manufacturing activity in the New York area unexpectedly jumped in October, a positive sign for the struggling recovery.
Stronger retail sales prompted businesses to restock shelves and warehouses, and inventories rose 1% in July as a result. The gain should help ease concerns that inadequate sales will slow the U.S. economic recovery.
Just a week ago, better-than-expected earnings sent stocks soaring. But this week, renewed worries from the Fed about the U.S. economic recovery led the forces pushing stocks down about 375 points over a three-day period.
On the heels of Intel's better-than-expected June quarter earnings report, the latest U.S. business inventories and import/export reports suggest the nation's economy slowed somewhat in the second quarter.
The long drawdown in business inventories appears to be over, as inventories rose 0.5% in February, after rising a revised 0.2% in January -- a sign that businesses are becoming more-confident about holding goods as the U.S. economic expansion continues.
U.S. business inventories unexpectedly dipped 0.2% in December, the U.S. Commerce Department announced Friday. The decline was primarily due to an increase in sales, a bullish sign for economic recovery.
News that business inventories and industrial production are rising suggests the U.S. economic recovery is on track. But unlike previous recessions, there are five potential "potholes" in the road ahead. Declining employment and increasing commercial real estate foreclosures are two possible biggies.
Inventories rose for the second straight month, suggesting that businesses are becoming more confident about the U.S. economy's ability to continue to grow.










