» Subscribe Today!
More of what you want to know.
The Daily News
X

Forgot your password?
Skip Navigation LinksHome >
VOL. 129 | NO. 155 | Monday, August 11, 2014

US Wholesale Inventories Rise 0.3 Percent in June

CHRISTOPHER S. RUGABER | AP Economics Writer

Print | Front Page | Email this story | Comments ()

WASHINGTON (AP) – U.S. wholesalers restocked their warehouses at a modest pace in June for a second straight month, a sign they may anticipate slower growth ahead.

The Commerce Department said Friday that wholesale inventories rose 0.3 percent, the same as the previous month. May's inventory gain was revised down from 0.5 percent.

The slowdown in restocking likely reflects weaker wholesale sales. Sales grew just 0.2 percent in June, down from 0.7 percent in May.

In June, companies boosted their stockpiles of furniture, lumber, computer equipment, and steel and other metals. But auto inventories fell, even as sales jumped. That suggests automakers will need to keep cranking out cars to meet strong demand.

The report shows that inventory levels are roughly in line with sales. That means wholesalers likely haven't gone too far in restocking their goods. As a result, they probably won't have to slow restocking in the coming months.

Slower rebuilding of inventories can drag on growth. That's because it means fewer orders for factory goods.

That is what happened in the first three months of the year, when a big downshift in inventory building subtracted 1.2 percentage points from the economy's growth. The economy contracted at a sharp 2.1 percent annual rate. Harsh winter weather and a big drop in exports also contributed to the decline.

The slowdown was temporary, however. Inventory restocking contributed about 1.7 percentage points to growth in the second quarter, when the economy expanded at a 4 percent annual rate.

The report Friday covers inventories held at the wholesale level. In a later report, the government will detail inventories at the manufacturing and retail levels.

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 This material may not be published, broadcast, rewritten or redistributed.

Sign-Up For Our Free Email Edition
Get the news first with our daily email


 
Blog Get more from The Daily News
Blog News, Training & Events
RECORD TOTALS DAY WEEK YEAR
PROPERTY SALES 66 378 15,444
MORTGAGES 67 456 20,235
FORECLOSURE NOTICES 12 121 4,007
BUILDING PERMITS 175 1,046 36,888
BANKRUPTCIES 58 290 14,633
BUSINESS LICENSES 16 80 5,209
UTILITY CONNECTIONS 76 388 22,205
MARRIAGE LICENSES 28 111 4,774

Weekly Edition

Issues | About

The Memphis News: Business, politics, and the public interest.