11.10.11
Time to stock up again? Wholesale inventories fell in September for the first time since December 2009, the Commerce Department said yesterday. The 0.1% drop was accompanied by a slight rise in sales. The announcement could signal an increase in production in the coming months, according to observers.
Economists offered several theories to explain the drawdown in inventories. Since the downturn, companies have kept tighter inventory levels so they can respond more flexibly to shifts in demand.
The US economy grew 2.5% from June to August. Excluding inventories, the economy grew at a 3.6% annual rate, up from a 1.6% in the April through June period, according to the Commerce Department.
According to experts, wholesalers account for 30% of all business stockpiles. Factory inventories, which comprise about 38% of the total, grew 0.1% in September, the Commerce Department said Nov. 3. Retail stockpiles, which make up the rest, will be included in the Nov. 15 business inventories report.