FILE -In this Tuesday, Nov. 26, 2013, file photo, Chris Busch, multichannel sales support manager at an Oklahoma City Best Buy store, moves inventory at the store in Oklahoma City, Tuesday, Nov. 26, 2013. The government reports how much U.S. businesses adjusted their stockpiles in November on Tuesday, Jan. 14, 2014. (AP Photo/Sue Ogrocki, File)
January 14, 2014 - 7:02 AM
WASHINGTON - U.S. companies continued to build up their stockpiles in November as their sales improved, a sign that businesses believe consumers will increase spending in the months ahead.
The Commerce Department says business stockpiles grew 0.4 per cent in November. That follows a strong 0.8 per cent gain in October. Sales increased 0.8 per cent in November after a 0.5 per cent gain the previous month.
Rising stockpiles should help keep growth solid in the October-December quarter. Several economists project growth at a 3 per cent annual rate in that period after a 4.1 per cent rate in the previous quarter.. Greater restocking boosts growth because it requires more factory production.
Retailers led much of the gains in inventories ahead of the holiday shopping season. Wholesalers also increased their stockpiles. Stockpiling by manufacturers was flat.
News from © The Associated Press, 2014