Tags: US | Economy

Wholesale Inventories, Sales Rise More Than Expected

Friday, 09 Apr 2010 10:13 AM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Inventories held by wholesalers rose by a larger-than-expected amount in February while sales increased for the 11th consecutive month.

The Commerce Department said Friday that inventories at the wholesale level were up 0.6 percent in February, better than the 0.4 percent increase analysts had expected. Sales rose 0.8 percent, surpassing the 0.5 percent rise economists had forecast.

The gains were an encouraging sign that stronger demand is prompting businesses to restock depleted shelves, a development that will help sustain the economic recovery.

The inventory increase followed a 0.1 percent rise in January, which was initially reported as a decline of 0.2 percent.

The rise in sales followed a 0.9 percent January advance and marked the 11th straight month that sales have been up.

Analysts are hoping that the string of sales increases will prompt businesses to begin restocking their depleted shelves on a sustained basis, giving a boost to the economy as it struggles to recover from the worst recession since the 1930s.

The back-to-back gains in inventories were the first since increases in both October and November.

However, inventories drop again in December. Before October, inventories had posted 13 straight declines as businesses went through a massive liquidation of their stocks during the recession, struggling to contain costs as demand for their products slumped.

The rise in inventories and sales in February left the inventory to sales ratio at 1.16, the same as in January. That is still at a historically low level and means that it would take only 1.16 months to deplete stockpiles at the February sales pace. The inventory to sales ratio was at 1.38 months a year ago.

The swing from massive inventory reductions contributed about two-thirds of the economy's overall growth in the October-December quarter, a period when the gross domestic product expanded at a 5.6 percent annual rate.

© Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Charlie Rangel: GOP Believes 'Slavery Isn't Over'

Thursday, 30 Oct 2014 23:09 PM

Rep. Charlie Rangel on Thursday likened Republicans to Confederates from the Civil War era, charging that they "believe  . . .

New York Archdiocese to Reorganize, Merge Parishes

Thursday, 30 Oct 2014 22:51 PM

The Roman Catholic Archdiocese of New York will merge more than 50 parishes because of lower attendance and rising expen . . .

Michelle Bachmann: World Sees US Has No Plan to Fight Terrorism

Thursday, 30 Oct 2014 21:56 PM

The world has no confidence in U.S. leadership because they don't know what our plans to fight terrorism are, Rep. Miche . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved