US stockpiles jump in October by most in 9 months

WASHINGTON (AP) -- U.S. companies boosted their stockpiles at the fastest rate in nine months as their sales grew. The gain in restocking indicates businesses anticipated a healthy holiday shopping season.

The Commerce Department says business inventories increased 0.7 percent in October, following a 0.6 percent gain in September. Sales rose 0.5 percent, above a 0.3 percent gain the previous month.

The increase could signal better growth in the October-December quarter than some economists had anticipated. Greater restocking boosts growth because it requires more factory production.

Growth is still likely to slow from the July-September quarter's robust 3.6 percent annual rate, half of which came from a jump in restocking.

But consumers appear to be spending more, a trend that will help keep the economy growing at solid pace.

Comments are posted from viewers like you and do not always reflect the views of this station. powered by Disqus