Friday, August 1st19.8°C
21450
21739

US wholesale stockpiles rose in November but at slower pace following October surge

WASHINGTON - U.S. wholesale businesses increased their stockpiles in November but at less than half the pace of October when they had jumped by the largest amount in two years.

Wholesalers boosted stockpiles 0.5 per cent in November compared with October when inventories had increased 1.3 per cent, the Commerce Department reported Friday. The October gain had been the biggest one-month increase since a 1.5 per cent rise in October 2011.

Sales were solid in both months, rising 1 per cent in November following a 1.1 per cent increase in October.

Rising stockpiles boost growth because it means factories have produced more goods. Robust restocking contributed two-fifths of the 4.1 per cent growth rate in the July-September quarter. Economists say growth slowed in the fourth quarter in large part because they believe the pace of restocking slowed following the third quarter surge.

With the November gain, inventories at the wholesale level stood at a seasonally adjusted $516.4 billion, 3.3 per cent higher than a year ago.

The government tracks inventories held by wholesalers, manufacturers and retailers. A report covering all inventory levels will be released next Tuesday.

At the wholesale level, auto stockpiles dropped by 0.8 per cent in December while stockpiles of computer equipment rose 3 per cent after a big 5.7 per cent decline in October.

Recently, various signs of strength including a big improvement in the trade deficit have prompted economists to boost their forecasts for fourth quarter growth. Some now believe growth will be around 3 per cent, an upgrade from early estimates that growth would be less than 2 per cent.

Analysts believe the momentum will carry over into 2014, reflecting better-than-expected recent gains.

Factory activity as measured by the Institute for Supply Management's manufacturing index stayed near a 2 1/2-year high in December. Americans are buying more cars and homes, increasing demand for steel, furniture and other manufactured goods.

The reports add to encouraging signs that 2014 could mark a turning point for an economy that has struggled through to gain altitude since the Great Recession ended in June 2009.

Analysts expect the economy will face fewer barriers in 2014 especially in the area of federal government policies. Higher taxes in 2013 and across-the-board spending cuts shaved an estimated 1.5 percentage points from growth last year.

Many economists are looking for growth close to 3 per cent in 2014, up from an expected 1.8 per cent growth rate in 2013.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX15184.77-145.961
S&P CDNX1000.65-0.87
DJIA16462.62-100.68
Nasdaq4330.018-39.755
S&P 5001918.90-11.77
CDN Dollar0.9165-0.0004
Gold1293.30+12.00
Oil97.28-0.89
Lumber324.80+0.40
Natural Gas3.73-0.017

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.17-0.04
Cantex0.085+0.02
Anavex Life Sciences0.25-0.012
Metalex Ventures0.08-0.005
Russel Metals34.85-0.38
Copper Mountain Mining2.66-0.09
Colorado Resources0.185-0.02
ReliaBrand Inc0.10+0.019
Sunrise Resources Ltd0.03-0.005
Mission Ready Services0.155+0.005

 



20759

FEATURED Property
20159481175 Stoneypointe Court
10085448 bedrooms
$798,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Jobs, jobs, jobs galore

On March 6, 2010 a bridge in Turku, Finland bent 56 inches (143 centimeters) due to structural failures of both piers. No one was injured. The bridge had to be demolished 4 months later. Our infrast...


The rewards of listening

Eighty percent of our success in learning from other people is based on how well we listen. Other people’s experience can be enormously helpful. With it we can often overcome time restraints and...


Take charge of your debt

Photo: Thinkstock.comWays to reduce your Debt:Make a budget and get budget counselingA basic first step for debt reduction is to prepare a budget and plan your spending. Once you have a budget, you mu...

_








Member of BC Press Council