BUSINESSWEEK: BUSINESS INVENTORIES IN U.S. CLIMB 0.5%, MOST SINCE JULY 2008

BusinessWeek’s Bob Willis reports inventories rose .5% in February, the greatest increase since July 2008. Are you ready for business to boom?

BusinessWeek Excerpt:
Inventories in the U.S. rose 0.5 percent in February, the most since July 2008, as companies boosted orders to try to keep up with sales.

Companies are set to begin boosting investment and output in coming months after the worst recession in seven decades forced a record drawdown in stockpiles last year. Efforts to stabilize inventories in the fourth quarter accounted for two- thirds of that quarter’s 5.6 percent growth pace.

“The extended run of strong demand is now compelling businesses to begin building inventory,” Aaron Smith, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “Inventories should start to climb toward normal levels as firms become more expansionary.”

Another report from the Commerce Department today showed retail sales climbed 1.6 percent in March, the most in four months, a sign consumers will play a bigger role in the broadening recovery.

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