Tuesday, October 21st13.0°C
23836
22828

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

23021


Recent Trending




Today's Market
S&P TSX14547.71+209.94
S&P CDNX822.2810.93
DJIA16614.81215.14
Nasdaq4419.479+103.404
S&P 5001941.28+37.27
CDN Dollar0.8914+0.0005
Gold1249.20-2.50
Oil82.17+0.21
Lumber329.70+0.10
Natural Gas3.687-0.024

 
Okanagan Companies
Pacific Safety0.100.00
Knighthawk0.01-0.005
QHR Technologies Inc1.17+0.05
Cantex0.055-0.025
Anavex Life Sciences0.192+0.001
Metalex Ventures0.045-0.005
Russel Metals33.09+0.81
Copper Mountain Mining2.17+0.18
Colorado Resources0.150.00
ReliaBrand Inc0.012+0.0009
Sunrise Resources Ltd0.060.00
Mission Ready Services0.46+0.01

 



22980

FEATURED Property
1991615#6-6267 Sundstrom Court
6 bedrooms 4 baths
$684,969
more details
image2image2image2
Click here to feature your property
Please wait... loading


Keep it rubber side down

This time of year, I always worry about which friends of mine will get caught going off the road in adverse weather conditions. With a little preparation most accidents can be avoided. Having won the...


Big bank predicts rate hike

Photo: Thinkstock.comThe end of record-low rates is nigh, according to one major bank, which has taken a stance and predicted when the Bank of Canada will raise its long-standing overnight rate. &ldq...


Experts share strategies in Kelowna

The third week in October is “Small Business Week”, a week dedicated to supporting local, small businesses. The week was designed to bring awareness to Canadians about the role small busin...

_





23545


Member of BC Press Council


23741