Friday, January 30th1.0°C
24624
23931

US wholesale stockpiles rise at a slower pace in May as sales gains also weaken

WASHINGTON - U.S. wholesale stockpiles rose in May at the weakest pace in five months as companies kept their supplies in line with slower sales.

Wholesale stockpiles grew 0.5 per cent in May, the Commerce Department said Thursday, down from a 1 per cent surge in April. Big gains in inventories of autos, lumber and metals drove the latest increase.

Sales at the wholesale level, meanwhile, rose 0.7 per cent, down from 1.3 per cent in April. Auto sales jumped 1.1 per cent while sales of computers and electrical equipment fell.

The slower pace of sales and restocking suggests that consumer and business demand weakened a bit in May. But the figures also show that companies aren't building up large stockpiles, which can leave them with unsold goods if sales slow further.

And May's increase in inventories can contribute to economic growth because it means more orders of factory goods, which boosts manufacturing output.

Thursday's report covers inventories held at the wholesale level. Next week, the government will detail inventories at the manufacturing and retail levels.

Businesses sharply cut back on restocking in the first three months of the year, a big reason the economy shrank at a 2.9 per cent annual rate. That was the largest contraction since the first quarter of 2009, in the depths of the recession.

But companies are now restocking their shelves and warehouses at a faster pace, which should boost growth. Total business inventories rose 0.6 per cent in April, the biggest gain in 6 months.

Harsh winter weather in the first quarter shut down factories, disrupted shipping and lowered auto and home sales. Most economists expect warmer weather will help the economy grow again in the second quarter, at about a 2.5 per cent to 3 per cent annual rate.

The Canadian Press


Read more Business News

24813


Recent Trending




Today's Market
S&P TSX14598.64-4.24
S&P CDNX666.37-0.93
DJIA17304.17-112.68
Nasdaq4610.886-27.108
S&P 5001996.64-5.52
CDN Dollar0.7885-0.0038
Gold1286.60-5.10
Oil46.60+0.24
Lumber318.40+2.90
Natural Gas2.87-0.111

 
Okanagan Companies
Pacific Safety0.120.00
Knighthawk0.010.00
QHR Technologies Inc1.45-0.02
Cantex0.04+0.005
Anavex Life Sciences0.185+0.003
Metalex Ventures0.0350.00
Russel Metals23.61-0.09
Copper Mountain Mining0.99-0.01
Colorado Resources0.1450.00
ReliaBrand Inc0.01+0.0031
Sunrise Resources Ltd0.030.00
Mission Ready Services0.210.00

 



24909

FEATURED Property
21329883355 Dunkley Road
3 bedrooms 2 baths
$299,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Leaving a job: changing careers

Many people, who find themselves out of work and with time on their hands, and money in their pockets due to lay-off, start thinking about a career change. If you weren’t happy with the directio...


Service fit makes happy employees

Finding the right employees for the front lines of your company is key to developing a great service attitude within your company. It is just as important as hiring the right accountant, manager, sale...


How to price: workbook approach

In 2008 Self Counsel Press published my book - Pricing Strategies for Small Business. The book is now available in Europe, India, Russia and the United States. The purpose of the book was to make avai...

_





24709


Member of BC Press Council


24975