Saturday, December 20th-0.3°C
24124
23791

US business stockpiles rise at faster pace in December as sales growth slows

WASHINGTON - U.S. businesses restocked their shelves and warehouses at a faster pace in December, but sales slowed, a cautionary sign for the economy.

The Commerce Department said Thursday that inventories rose 0.5 per cent after a 0.4 per cent increase in November. Sales growth fell to just 0.1 per cent, from 0.7 per cent in November.

The figures point to a risk for the economy: if companies build their stockpiles at a faster pace than their sales are growing, they may end up stuck with more goods than they need.

That would force them to cut prices sharply and sell at discounts in order to clear the extra inventory. Businesses would also likely order fewer goods, weighing on factory production.

Retailers' stockpiles rose 0.6 per cent, while their sales were flat in December, the report said. Manufacturers and wholesalers increased their inventories by a smaller amount. Manufacturers' sales fell, while wholesalers' sales rose at a slower pace than in November.

A separate report Thursday showed that retail sales fell 0.4 per cent in January as extremely cold weather kept shoppers at home. Auto sales fell sharply.

The decline in January retail sales suggests that companies will need to reduce their stockpiles in the first few months of this year. That's likely to slow economic growth in the January-March quarter.

Rising inventories helped boost growth in the second half of last year. A big increase in stockpiles during the July-September quarter contributed two-fifths of that period's surprisingly robust 4.1 per cent annual growth rate. Rising inventories contributed another 0.4 percentage point to the October-December quarter's 3.2 per cent growth.

But slower restocking will likely slow growth in the January-March quarter to about 2 per cent to 2.5 per cent, economists forecast.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
23744


24153

FEATURED Property
2154805646 Francis
10 bedrooms 6 baths
$780,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_



24386

24111


Member of BC Press Council


24604