Friday, August 29th20.4°C
23003
21739

US business inventories up 0.4 pct in January, while sales plunge to lowest level in 4 months

WASHINGTON - U.S. businesses continued to restock their shelves and warehouses in January, but sales plunged during the snowstorm-plagued month.

Inventories rose 0.4 per cent after a 0.5 per cent increase in December, the Commerce Department said Thursday. But sales dropped 0.9 per cent in January after a 0.1 per cent decrease the previous month, putting sales back near September 2013 levels.

The report suggests that winter weather kept shoppers at home. But businesses anticipate a rebound because they expanded their inventories to meet expected demand in the months ahead.

Still, there is a possible danger to economic growth: When companies build their stockpiles as their sales fall, they may end up stuck with more goods than they need.

That potentially forces them to slash prices and sell at discounts in order to clear the extra inventory.

However, the February retail sales figures released separately on Thursday indicate that sales growth has picked up. Retail spending rose 0.3 per cent in February. Retail sales had fallen 0.6 per cent in January and 0.3 per cent in December.

The increase suggests that consumer spending has started to recover after being tempered by snowstorms and freezing temperatures that blanketed much of the country.

Yet overall economic growth could be slower due to the recent decline in sales and inventory expansion that has slowed from its pace in the middle of 2013.

Slower restocking will likely lower growth to about a 2 per cent annual pace in the first quarter of 2014, down from 4.1 per cent in last year's July-September quarter and 2.4 per cent in the October-December quarter.

The Canadian Press


Read more Business News

21337


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 Dollar0.9191-0.0017
Gold1281.70-2.1001
Oil95.84+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

 



22719

FEATURED Property
20445215005 River Road
2 bedrooms 2 baths
$179,900
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...

_








Member of BC Press Council


23002