Tuesday, September 2nd14.6°C
22736
22642

US wholesalers increase stockpiles just 0.3 per cent in December, smallest gain since last July

WASHINGTON - U.S. wholesale businesses increased their stockpiles in December at the slowest pace since last summer, another sign that the economy lost some momentum at the end of 2013.

Wholesalers boosted stockpiles by 0.3 per cent in December from November, smallest gain since July, the Commerce Department reported Tuesday.

Sales growth slowed to 0.5 per cent December after healthy gains of 1 per cent in November and 1.1 per cent in October.

Rising stockpiles boost economic growth because they reflect expanding production at factories. Bigger inventories accounted for more than 40 per cent of economic growth in the July through September period last year when gross domestic product increased at a robust 4.1 per cent annual pace.

The surge in stockpiles slowed in the last three months of 2013, and overall growth fell back to a still-healthy 3.2 per cent.

After the December increase, inventories at the wholesale level stood at a seasonally adjusted $517.9 billion, up 4 per cent from a year earlier.

The government tracks inventories held by wholesalers, manufacturers and retailers. A report covering all inventory levels comes out Thursday.

At the wholesale level, inventories of computer equipment rose by 5.3 per cent after a healthy 3.6 per cent gain in November. Automotive stockpiles rose 0.6 per cent after dropping in November. Overall, inventories of long-lasting durable goods rose 1.3 per cent in December. But non-durable goods stockpiles fell 1.3 per cent, pulled down by a 5.2 per cent drop in inventories of farm products.

Economists had hoped 2014 would be a breakout year for the U.S. economy, still struggling to regain full strength nearly five years after the Great Recession ended. But recent economic reports have sent out conflicting signals.

Consumer spending, which drives 70 per cent of U.S. economic activity, rose at a solid pace in December. Consumer confidence has also been healthy. Unemployment has fallen to a five-year low 6.6 per cent.

But two straight months of weak job growth have raised questions about the economy's strength. Employers added a disappointing 113,000 jobs in January and just 75,000 in December. And part of the drop in unemployment — from 7.2 per cent in October — has been caused by Americans dropping out of the job market, which means they can no longer be counted among the jobless.

The Canadian Press


Read more Business News

23057


Recent Trending




Today's Market
S&P TSX15625.73+67.561
S&P CDNX1023.991.62
DJIA17098.4518.88
Nasdaq4580.271+22.577
S&P 5002003.37+6.63
CDN Dollar0.9162-0.0032
Gold1281.70-2.1001
Oil95.96+1.29
Lumber349.60+2.60
Natural Gas3.965+0.054

 
Okanagan Companies
Pacific Safety0.20+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.190.00
Cantex0.08+0.01
Anavex Life Sciences0.25+0.01
Metalex Ventures0.0750.00
Russel Metals36.48+0.09
Copper Mountain Mining2.93+0.02
Colorado Resources0.180.00
ReliaBrand Inc0.10+0.001
Sunrise Resources Ltd0.0250.00
Mission Ready Services0.245-0.005

 



21807

FEATURED Property
2009361101- 1028 Lakeshore Drive
1 bedrooms 1 baths
$154,000
more details
image2
Click here to feature your property
Please wait... loading


At the Core: Lessons in pricing from Apple

Apple has taught many entrepreneurs the importance of design, how to create buzz when introducing new products to the marketplace, how to pioneer new technology and the importance of superior quality....


New Real Estate Brokerage in town

Move over “big guys” there’s a new brokerage in town featuring local expertise, long standing experience and a fresh boutique approach. Kelowna, August 31 2014 – You may have...


How much mortgage should you carry?

There are several things to consider when deciding how much home to buy. 1. Draw up a budget including the new mortgage payments. While the rules used by most lenders require that the mortgage paym...

_



22692

22692


Member of BC Press Council


22810