Inventories at wholesalers in the U.S. increased at the end of the first quarter at a pace that suggests that companies are replenishing stockpiles to meet demand, according to Reuters. On Tuesday, the Commerce Department reported that stockpiles in the U.S. grew by 1.1% in March, which was roughly in line with economists’ expectations. Sales increased by 2.9%, reversing a small drop in February. Wholesalers had just 1.13 months worth of goods on hand at the current sales pace, which is the lowest level on record, tied with June 2008.
The slower growth of stockpiles than sales suggests that companies will continue to increase inventories to meet demand, with the stockpile of durable goods adding 0.4% compared to a 2.3% sales increase, with a 1.46 month inventory that marks a seven year low. According to The Wall Street Journal, The Labor Department reported on Tuesday that prices on goods imported into the U.S. increased by 2.2% in April from the previous month, adding to the 2.6% increase in March. That marked an 11.1% annual increase, and the first consecutive 2% increases in almost three years.
Click here to read the story on inventories from Bloomberg News.
Click here for coverage of import prices from The Wall Street Journal.