BLOOMBERG: INVENTORIES AT U.S. WHOLESALERS UNEXPECTEDLY GREW
Last week on Bloomberg.com, Courtney Schlisserman shared good and unexpected news: Inventories at U.S. wholesalers rose in October for the first time in over a year!
Bloomberg Excerpt:
Inventories at U.S. wholesalers rose in October for the first time in more than a year, signaling companies are picking up the pace of orders as the economy shows signs of improving.
The 0.3 percent increase in stockpiles, the first gain since August 2008, followed a 0.8 percent drop in September, figures from the Commerce Department showed today in Washington. Sales climbed 1.2 percent.
A record reduction in stockpiles in the first nine months of the year is setting companies up for increased spending and production as demand stabilizes. The improvements will help sustain the economic expansion into next year.
The report is “certainly a promising sign for the U.S. economy,” said Eric Lascelles, chief economist at TD Securities Inc. in Toronto. “Companies are preparing for an expansion, whether or not they believe there is a robust one out there.”
Economists forecast stockpiles would fall 0.5 percent after a previously reported 0.9 percent drop in September, according to the median of 35 estimates in a Bloomberg News survey. Estimates ranged from a decline of 1 percent to an increase of 0.5 percent.
Stocks declined for a third day after a reduction in Spain’s credit outlook spurred speculation defaults will spread through the global economy. The Standard & Poor’s 500 Index was down 0.3 percent to 1,088.63 at 10:25 a.m. in New York.