STOCKMARKET WATCH -- Wednesday, 11 July 2012

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26. Ahead of the Bell: US wholesale inventories

http://hosted.ap.org/dynamic/stories/U/US_WHOLESALE_INVENTORIES_AHEAD_OF_THE_BELL?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2012-07-11-06-43-36

WASHINGTON (AP) -- U.S. companies likely kept adding to their wholesale stockpiles in May, but not quickly enough to spur the kind of growth that would make a dent in the unemployment rate.

Sales at the wholesale level rose 1.1 percent in April, sparking a 0.6 percent rise in inventories that month that likely continued into May. Economists expect sales at the wholesale level may have slipped 0.1 percent in May, however.

Greater restocking means companies ordered more goods, which increases factory production. But the broader economic benefits from faster restocking could be offset by weaker consumer purchases.

Stockpiles at the wholesale level stood at $483.5 billion in April. That's nearly 26 percent above the post-recession low of $384.9 billion in September 2009.