U.S. Wholesale Inventories Rise More-Than-Forecast 1.3%; Sales Climb 0.6%

[ProSense]

Source: Bloomberg

Inventories at U.S. wholesalers rose in July by the most in two years as a rebound in demand prompted companies to add to stockpiles.

The 1.3 percent increase in the value of inventories was three times the median estimate in a Bloomberg News survey and followed a 0.3 percent gain the prior month, Commerce Department figures showed today in Washington. Sales at distributors climbed 0.6 percent, the most since April, after falling 0.5 percent.

The amount of goods on hand compared with sales suggests manufacturing gains will be sustained in coming months. Inventory rebuilding, after helping the economy recover from the worst recession since the 1930s, may cool unless consumers pick up the pace of spending.

“Companies showed a willingness to extend themselves a bit more, and that’s a positive,” said Richard DeKaser, chief economist at Woodley Park Research in Washington, whose 0.8 percent forecast was the highest in the Bloomberg survey. “At the same time, inventories are still lean.”




Read more: http://www.bloomberg.com/news/2010-09-10/wholesale-inventories-in-u-s-rise-the-most-in-two-years-on-demand-rebound.html