US recovery losing momentum
By Martin Crutsinger |
July 10, 2010, Saturday
|
Print Edition
Print Edition
INVENTORIES held by wholesalers in the United States rose for a fifth consecutive month in May but sales fell for the first time in more than a year, sending a mixed signal about the strength of the recovery.
Wholesale inventories increased 0.5 percent while sales dropped 0.3 percent, US Commerce Department said yesterday. It was the first decline for sales since March 2009.
The May sales decline is the latest sign that the economic recovery could be losing momentum as it enters the second half of this year. Weakness in sales could discourage businesses from boosting orders. That would translate into a slowdown in production.
Economists had hoped that a steady rise in demand would prompt businesses to step up orders and restock depleted shelves. That would prompt factories to boost hiring to support increased production.
Manufacturing has been among the strongest industries coming out of the recession, but there are signs the recovery could be faltering.
Both consumer spending and business hiring have slowed, and the housing market is struggling.
Wholesale inventories increased 0.5 percent while sales dropped 0.3 percent, US Commerce Department said yesterday. It was the first decline for sales since March 2009.
The May sales decline is the latest sign that the economic recovery could be losing momentum as it enters the second half of this year. Weakness in sales could discourage businesses from boosting orders. That would translate into a slowdown in production.
Economists had hoped that a steady rise in demand would prompt businesses to step up orders and restock depleted shelves. That would prompt factories to boost hiring to support increased production.
Manufacturing has been among the strongest industries coming out of the recession, but there are signs the recovery could be faltering.
Both consumer spending and business hiring have slowed, and the housing market is struggling.
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