US wholesale stockpiles grew 0.5 percent in August

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Associated Press

Posted on October 10, 2012 at 9:01 AM

Updated Wednesday, Oct 10 at 9:02 AM

WASHINGTON (AP) — U.S. wholesalers increased their stockpiles in August and their sales grew for the first time in four months. The gains could provide a boost to the still-weak economy.

The Commerce Department says wholesalers' stockpiles rose 0.5 percent in August after a 0.6 percent increase in July. Sales jumped 0.9 percent in August, ending three months of declines. The sales increase was the biggest one-month gain since February.

Total wholesale inventories stood at $487.5 billion. That's 26.9 percent higher than the post-recession low hit in September 2009.

Companies typically boost their stockpiles when they anticipate sales will rise in coming months. Faster restocking helps drive economic growth. When businesses order more goods, it typically leads to more factory production.

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