US inventories rise for 4th month
By Martin Crutsinger |
June 12, 2010, Saturday
|
Print Edition
Print Edition
INVENTORIES held by United States businesses rose for a fourth consecutive month in April while total business sales increased for a 13th consecutive month.
US Commerce Department said yesterday that inventories were up 0.4 percent in April after an upwardly revised estimate of a 0.7 percent gain in March. Total business sales rose 0.6 percent in April.
The hope is that demand will remain strong enough to convince businesses to keep restocking their shelves. But a separate report showed that retail sales took a big tumble in May, casting a cloud over hopes for future strength in demand.
Analysts said the 1.2 percent May drop in retail sales, the largest in eight months, will be worrisome if it is followed by further declines since consumer spending is 70 percent of total economic activity.
The April increase in inventories reflected gains of 0.5 percent in stockpiles held by manufacturers, increases of 0.4 percent in inventories at the wholesale level, and 0.2 percent in the retail level.
Total inventories had fallen for 13 consecutive months starting in September 2008. Businesses engaged in a massive liquidation of their stockpiles in an effort to trim costs during a severe recession.
The move away from slashing inventories to restocking has played an important role in supporting growth in the past two quarters.
US Commerce Department said yesterday that inventories were up 0.4 percent in April after an upwardly revised estimate of a 0.7 percent gain in March. Total business sales rose 0.6 percent in April.
The hope is that demand will remain strong enough to convince businesses to keep restocking their shelves. But a separate report showed that retail sales took a big tumble in May, casting a cloud over hopes for future strength in demand.
Analysts said the 1.2 percent May drop in retail sales, the largest in eight months, will be worrisome if it is followed by further declines since consumer spending is 70 percent of total economic activity.
The April increase in inventories reflected gains of 0.5 percent in stockpiles held by manufacturers, increases of 0.4 percent in inventories at the wholesale level, and 0.2 percent in the retail level.
Total inventories had fallen for 13 consecutive months starting in September 2008. Businesses engaged in a massive liquidation of their stockpiles in an effort to trim costs during a severe recession.
The move away from slashing inventories to restocking has played an important role in supporting growth in the past two quarters.
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