Business Inventories in U.S. Increased in May as Sales Fell |
| Bloomberg - Jul 16, 2012 |
Inventories in the U.S. rose more than forecast in May as sales declined for a second month, indicating companies may limit factory orders.
The 0.3 percent increase in stockpiles followed a revised 0.3 percent gain in April that was smaller than initially estimated, Commerce Department data showed today in Washington. The median forecast in a Bloomberg News survey projected a 0.3 percent gain. Sales fell 0.1 percent in May for a second month.
Companies may reduce orders placed with manufacturers as they attempt to keep stockpiles in line with sales and gauge whether spending and the economy will keep slowing. Another report today showed retail sales fell in June for a third month.
“Business inventories are generally in pretty good shape, but businesses have been proactive and when seeing moderation in demand, keeping their inventories relatively tight as well,” Russell Price, senior economist at Ameriprise Financial Inc. in Detroit, said before the report. Smaller job gains have meant “slower income growth, and that translates directly to slower spending growth.”
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- Posted: 2012-07-16 11:01:15
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