Tuesday, June 30th17.7°C
25016
25870

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

26655


Recent Trending




Today's Market
S&P TSX14492.33+2.18
S&P CDNX670.08+2.99
DJIA17659.15+62.80
Nasdaq4984.99+26.52
S&P 5002065.98+8.34
CDN Dollar0.8036-0.0029
Gold1168.90-9.60
Oil59.53+0.57
Lumber289.40-2.80
Natural Gas2.754-0.096

 
Okanagan Companies
Pacific Safety0.165-0.010
Knighthawk0.010.00
QHR Technologies Inc1.52-0.01
Cantex0.05+0.00
Anavex Life Sciences0.4374+0.0174
Metalex Ventures0.075+0.010
Russel Metals22.57-0.11
Copper Mountain Mining1.17+0.00
Colorado Resources0.095+0.005
ReliaBrand Inc0.0064+0.0010
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.185+0.015
Decisive Dividend Corporation2.50+0.42

 



26764

FEATURED Property
2333870312-3157 Casorso Road
2 bedrooms 2 baths
$244,500
more details
image2image2image2
Click here to feature your property
Please wait... loading


The price of money

Money is not a commodity. By definition, a commodity is a generic product that is bought and sold on price alone. Money, Canadian bills for example, look the same, smell somewhat the same, and are ava...


TFSA strategies

Photo: Thinkstock.comThe federal government has increased the annual contribution limit of Tax-Free Savings Accounts (TFSA) to $10,000. Going forward, the annual limit will no longer be indexed to inf...


Renovation dreaming

Photo: Thinkstock.comDreaming of a new fire pit? A deep soaker tub?With summer on its way, lots of families have renovations on their minds. Did you know that home buyers can apply for a Purchase Plus...

_



26532




Member of BC Press Council


26432