Saturday, August 23rd12.0°C
22951
22455

US businesses boost stockpiles 0.4 pct. in November, signalling strong growth in 4th quarter

WASHINGTON - U.S. companies built up their stockpiles in November as their sales improved. Continued growth in inventories suggests businesses believe consumers will increase spending in the months ahead.

The Commerce Department said Tuesday that business stockpiles grew 0.4 per cent in November. That follows a strong 0.8 per cent gain in October. Sales increased 0.8 per cent in November after a 0.5 per cent gain the previous month.

Rising stockpiles should help keep economic growth solid in the October-December quarter. Several economists project growth at a 3 per cent annual rate in that period after a 4.1 per cent 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.

But increases in stockpiles can also pose risks for economic growth. Two-fifths of the growth in the July-September quarter came from a buildup in stockpiles. All those additional products in stores and on warehouse shelves could weigh heavily on the companies that own them if consumer spending doesn't accelerate.

Retails sales rose 0.2 per cent in December, slightly slower than the gains in the previous two months.

Americans bought more clothes last month, shopped more frequently online and ate out more often. But they cut back on car and truck purchases compared with November. And they spent less at department stores and on electronics and furniture.

Slower sales can cause retailers, manufacturers and wholesalers to sell their goods at discounted prices, cutting into profits. And those companies will also order fewer new goods, lowering factory output.

Still, most economists said the December gains in retail spending point to growth in consumer spending, which drives roughly 70 per cent of economic activity.

The Canadian Press


Read more Business News

22719


Recent Trending




Today's Market
S&P TSX15535.55-19.71
S&P CDNX1005.583.38
DJIA17001.22-38.27
Nasdaq4538.551+6.446
S&P 5001988.40-3.97
CDN Dollar0.9137-0.0003
Gold1279.90+6.2001
Oil96.30+1.82
Lumber352.80-2.80
Natural Gas3.88-0.009

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.20-0.01
Cantex0.065-0.005
Anavex Life Sciences0.265+0.005
Metalex Ventures0.08+0.005
Russel Metals36.78-0.81
Copper Mountain Mining2.99+0.11
Colorado Resources0.17-0.015
ReliaBrand Inc0.115+0.02
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.26+0.045

 



21269

FEATURED Property
15103442541 Whitworth Road
4 bedrooms 4 baths
$3,950,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What is a journey without a destination?

Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...


Joint accounts: what you need to know!

Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...


Cost of an Injury Lawyer

Let’s face it; nobody wants to pay for legal services if they do not have to, but if you have been injured in an accident you may have thought about hiring a lawyer to help you navigate your cla...

_



23002

23002


Member of BC Press Council


22837