WASHINGTON--Inventories at U.S. wholesalers increased in April as stockpiles of cars, machinery and other long-lasting goods grew.
The inventories of U.S. wholesalers increased by 0.6% from the prior month to a seasonally adjusted $483.50 billion, the Commerce Department said Friday. Economists surveyed by Dow Jones Newswires had forecast a 0.5% gain.
Sales for wholesalers were up 1.1% in April to $415.02 billion.
Wholesalers must stock the pipeline to keep up with end demand. Despite weak job creation and worries about Europe, personal spending has been a bright spot for the U.S. economy so far this year.
The government's gross domestic product report last week showed consumer spending rose 2.7% during the January-to- March period, the best quarterly gain since 2010. Separate data showed personal spending increased 0.3% in April from the prior month.
But the economy as a whole slowed to a 1.9% growth rate in the first quarter, from a 3.0% annualized gain in the final quarter of 2011, partially because the pace of inventory increases slowed.
According to Friday's report, restocking of automobiles, up 1.7%, and machinery, up 2.4%, helped drive the overall inventory gains in April.
Wholesalers' inventories of all durable goods increased by 1.1%, the strongest gain since May 2011.
Meanwhile, non-durable goods inventories moved down 0.1% in April. Declining stockpiles of drugs and groceries helped off set a 2.0% rise in petroleum inventories.
The amount of wholesale goods on hand relative to sales in April was 1.17, the same as the prior month. The inventory- to-sales ratio measures how many months it would take for a firm to deplete its current inventory.
In March, overall wholesale inventories increased 0.3%, as previously reported. However, sales growth was revised down to 0.4% from 0.5%.
The Commerce Department data are available online at: http://www2.census.gov/wholesale/pdf/mwts/currentwhl.pdf.
(END) Dow Jones Newswires 06-08-121035ET Copyright (c) 2012 Dow Jones & Company, Inc.
U.S. Wholesale Inventories Rise More Than Expected In April - RTT News
6/8/2012 10:18 AM ET
(RTTNews) - U.S. wholesale inventories increased by more than expected in April even as wholesale sales increased, according to figures released Friday by the Commerce Department.
Total inventories of merchant wholesalers were recorded at a seasonally adjusted level of $483.5 billion at the end of April, a 0.6 percent increase from revised March levels, which were also up slightly from initial reports.
Economists had expected wholesale inventories to increase by about 0.5 percent.
On a year-over-year basis, U.S. wholesale inventories were up 8.2 percent from April 2011 levels.
April also saw an increase in sales at the wholesale level, with the Commerce Department figures showing a 1.1 percent increase to a seasonally adjusted level of $415 billion, up 6.8 percent from April 2011 levels.
Despite the larger increase in sales than in inventories, the inventories-to-sales ratio held steady at 1.17 in April.
The increase in wholesale inventories was driven by a 1.1 percent increase in inventories durable goods, which more than offset a 0.1 percent decline in inventories of non-durable goods. The April increase in durable goods inventories is the strongest since May 2011.
Automotive wholesalers recorded a 1.7 percent increase in inventories, while professional equipment inventories rose 1.4 percent, paper inventories jumped 3.9 percent, machinery inventories climbed 2.4 percent and petroleum inventories advanced 2 percent.
Inventories of groceries, drugs and furniture posted declines in April.
On the sales side, sales of wholesale durable goods were up 0.1 percent, while sales of non-durable goods rose 1.9 percent.
Automotive sales recorded a 3.8 percent increase, while wholesale petroleum sales jumped 4.8 percent, the largest increase since April 2011.
Wholesale sales of furniture, metals, machinery, paper goods and groceries all fell notably for the month.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Wholesale Inventories Rise, Markets Advance - Arlington Heights Daily Herald
A 0.6% increase in wholesale inventories lifted the markets higher during the midday with the Dow rising 24 points to 12,485. Nasdaq gained 11 points to 2842.
On the upside
Billionaire investor Carl Icahn acquired additional shares of Navistar International (NYSE: NAV) to increase his stake to 11.87%.
Cantor Fitzgerald initiated coverage of Neonode (Nasdaq: NEON) with a Buy rating.
Shares of Zalicus (Nasdaq: ZLCS) continued climbing after a Seeking Alpha contributor wrote yesterday that the company was one of five biotechnology stocks poised for growth.
On the downside
TheStreet Ratings affirmed its Hold rating on US Steel (NYSE: X).
TheStreet Ratings reiterated its Hold with a ratings score of C on Exelon (NYSE: EXC).
Shares of Quicksilver Resources (NYSE: KWK) continued falling after TheStreet Ratings downgraded the company to a Sell rating yesterday.
In the broad market, advancing issues outpaced decliners by a margin of nearly 5 to 4 on the NYSE and by nearly 7 to 5 on Nasdaq. The Russell 2000 which tracks small cap stocks rose 3 points to 763.
ETFs Rally On Robust Wholesale Inventory Data - Investors Business Daily
U.S. exchange traded funds mostly extended their rallies Friday on positive U.S. wholesale data and expectation that Spain will ask for help for its troubled banks at a eurozone meeting Saturday.
U.S. wholesale inventories grew 0.6% in April, the Commerce Department reported. That suggested businesses are ordering goods that should lead to increased factory production and sales. April's growth was twice that of March.
Market Overview
In afternoon trading, SPDR S&P 500 (SPY) and SPDR Dow Jones Industrial Average (DIA) both added 0.48%.
PowerShares QQQ (QQQ), a basket of the 100 largest nonfinancial stocks on the Nasdaq, rose 0.48%.
IShares MSCI EAFE Index (EFA), tracking developed foreign markets, lost 0.55%.
IShares MSCI Emerging Markets Index (EEM) shed 1.1%.
The major U.S. indexes found support at their 200-day moving averages, a positive development. They're on track to book their largest one-week gain of the year. Foreign markets, which broke below that key support level in May, continued weakening.
The U.S. market will trade in a volatile range in the weeks ahead, but will likely stay above their recent lows, says Mark Arbeter, chief technical strategist at S&P Capital IQ.
"The stock market is in the process of tracing out an intermediate-term reversal formation, in our view, which we think could take a couple of weeks," Arbeter wrote in his weekly technical report. "We think the low was put in during last Friday's minicapitulation, and after this near-term rally ends, we could see some backing and filling."
Stocks have the potential to rise for another 12 to 18 months, says Omar Aguilar, chief investment officer at Charles Schwab Investment Management. Since the 1930s, bull markets on average last four to six years and the current bull market, which started in March 2009, is likely reaching the last leg of its cycle.
"Low interest rates, an accommodating Federal Reserve, increasing lending activity by U.S. banks, stable home prices and encouraging unemployment numbers are all tailwinds for the U.S. economy and provide a good support for further appreciation of U.S. equity markets," Aguilar wrote in a client note this week.
The risks to the U.S. market lies mainly overseas from the eurozone credit crisis and slower growth in China, he added.
World leaders are busily meeting to hash out a plan to save the eurozone and thereby the world from a global recession, but whether Greece can stay in the eurozone is likely to still be unresolved, say Elsa Lignos and Adam Cole, currency strategists at RBC Europe Ltd.
US wholesale stockpiles grew 0.6 percent in April - US News and World Report
By MARTIN CRUTSINGER, Associated Press
WASHINGTON (AP) — U.S. wholesale businesses increased their stockpiles at a faster rate in April, responding to a strong gain in sales. The increase could be a good sign for economic growth in the April-June quarter.
The Commerce Department says stockpiles grew 0.6 percent at the wholesale level in April, double the March gain. Sales by wholesale businesses jumped 1.1 percent in April, nearly three times the March sales gain.
Stockpiles at the wholesale level stood at $483.5 billion in April. That's 25.6 percent above the post-recession low of $384.9 billion in September 2009.
It would take roughly five weeks to exhaust all wholesale stockpiles at the April sales pace. That's considered a healthy time frame and suggests businesses will keep restocking to meet demand.
When businesses step up restocking, they order more goods. That generally leads to increased factory production and higher economic growth.
Slower growth in inventories held back growth in the January-March quarter. In the first three months of this year, the economy grew at an annual rate of 1.9 percent.
The increase in wholesale inventories was bigger than economists had forecast. That could signal that inventory growth will pick up and boost economic growth in the April-June quarter.
But stockpile growth largely depends on the spending habits of U.S. consumers and businesses.
Weaker job creation in April and May could force some to scale back spending. And pay has risen just 1.7 percent over the past 12 months. That's slower than the rate of inflation for that period.
Sluggish job growth and weak pay raises threaten to drag on consumer spending, which would weaken growth. Consumer spending accounts for 70 percent of economic activity.
One positive change: Gas prices have tumbled since early April. That could give Americans more money to spend on appliances, vacations and other discretionary purchases.
Many businesses cut back on restocking last summer fearing that the economy was on the verge of another recession. When it became clear that it wasn't, they raced to rebuild stockpiles and keep pace with consumer demand.
Stockpiles at the wholesale level account for about 27 percent of total business inventories. Stockpiles held by retailers make up about one-third of the total. Manufacturing inventories represent about 40 percent of the total.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Eric Pickles tells 'tatty' shopping parades how to succeed - BBC News
Communities Secretary Eric Pickles has issued a set of guidelines to help "tatty" shopping parades in England compete with the High Street.
He urges small neighbourhood shops to "kick out the louts", set up "savvy" services and "restore local pride".
Labour branded his "shopping list for success" - which comes with no new money - "patronising" but it was welcomed by a leading trade body.
Retail guru Mary Portas has drawn up a £10m plan to revive the High Street.
But the Department for Communities and Local Government says it wants to reassure local convenience stores which employ 10 people or fewer that they have not been forgotten, describing them as "crucial" to the economy.
Local grocery shops, newsagents and cafes have been squeezed by the growth of out-of-town shopping centres and online retail, although are still growing at a faster rate than High Street stores, according to research quoted by the DCLG in a report.
'No-go zones'Mr Pickles said: "In the past too many neighbourhood shopping parades have been left to fade in memory and outlook.
“Start Quote
End Quote National Association of Convenience StoresThe government is giving long overdue credit to local shops and helping them by giving practical advice on how to work together and thrive”
"Convinced they can't compete with the mega stores and besieged by gangs of louts they have become tatty, no-go zones turning our beloved local convenience store into the local inconvenience.
"We've taken action to back local firms and small shops and today we are offering up ways to rescue run down shop parades by kicking out the louts, set up savvy services for shoppers and restoring the local pride in parades."
He said parades should be "thriving beacons of local business, home to the character of the neighbourhood community and the local shoppers' destination of choice".
The guide sets out government support available to local shops, such as the "Community right to bid", which is meant to make it easier for local people to take over "treasured" local assets faced with closure.
'Unhelpful'But Shadow Communities and Local Government minister Roberta Blackman-Woods, for Labour, said: "This is further gesture politics from the government to cover up their lack of an economic plan for the country and for High Streets.
"While shop owners are working hard to keep their businesses going, the government has done little to improve consumer confidence and get our economy moving again.
"Advice like 'Go the extra mile on service' is simply patronising and unhelpful."
But Mr Pickles' guidance was welcomed by the Association of Convenience Stores, which helped draw it up.
Chief Executive James Lowman said: "The government is giving long overdue credit to local shops and helping them by giving practical advice on how to work together and thrive."
He said Mr Pickles' department had made "great strides in its new National planning Policy Framework that will make it harder for big out-of-town stores to open up and destroy the diversity of local parades."
Stocks trading higher on wholesale report - Des Moines Register
Stocks rose for the fourth day in a row on Friday, capping their best week so far this year.
It was a relief for investors after the big drops of the previous week.
The Dow finished 93.24 points higher, or three-quarters of a percent, at 12,554.20. It ended the week up almost 3.6%.
The Standard & Poor's 500 index rose 10.67 points, or 0.81%, to close at 1,325.66. The Nasdaq composite rose 27.40 points, or 0.97%, to close at 2,858.42.
Stocks fell in morning trading, with the Dow Jones industrial average down almost 63 points. But they turned around after the government said that wholesale businesses restocked faster than analysts had expected.
The Commerce Department said U.S. wholesale stockpiles grew 0.6% in April. That's twice as fast as they grew in March and a sign that businesses are ordering enough goods to lead to increased factory production and sales. Investors had been braced for more sluggish growth.
Oil fell 72 cents to $84.10 per barrel. Sure, it was pushed down by long-term economic worries. But lower energy costs help consumers.
"If you had some doubts about an economic recovery, oil in the $80s is a lot better than oil at $110," said Jim Dunigan, managing executive of investments for PNC Wealth Management in Philadelphia. Oil traded just below $110 in late February.
Nine out of the ten industry groups in the S&P 500 rose. Only energy stocks declined, following energy prices lower.
Wal-Mart Stores ( WMT) was the biggest gainer in the Dow, up $2.35, or 3.6%, at $68.22. Other companies that depend heavily on a strong economy grew too, including Intel ( INTC), up 47 cents, or 1.8%, at $26.41, and General Electric ( GE), up 20 cents, or 1%, to $19.20. Home Depot ( HD) rose $1.11, or 2.2%, to $52.35.
Facebook ( FB) rose 79 cents, or 3%, to $27.10 after announcing an "app center" that will recommend new add-on software for users. Anything that boosts user interaction is likely to help it sell more ads, which has been a key concern for investors in its new stock, which debuted three weeks ago at $38.
Chesapeake Energy ( CHK) shareholders punished their directors and were rewarded by the market. The stock rose 51 cents, or 2.9%, to $18.36 after shareholder votes prompted the resignations of two directors at the company's annual meeting Friday. Earlier in the day the company said it will sell pipeline assets in three deals for a total of more than $4 billion in cash.
Navistar International ( NAV) rose $4.25, or 17.6%, to $28.36 after the activist investor Carl Icahn boosted his stake in the truck maker.
Markets fell in Asia. Shanghai's stock index lost a half-percent, its fifth day of losses. Japan's Nikkei fell 2.1%.
Chinese leaders have been showing signs of urgency ahead of May trade and industrial data due out this weekend that might be even weaker than earlier pessimistic forecasts. The Chinese government cut interest rates for the first time in four years and has reduced gasoline and diesel prices for the second time in a month.
Over the long run, that will put more money in the pockets of Chinese consumers. In the short run it's a sign that the government is worried about growth.
"That shows they're being proactive, but on the other hand, it also makes you wonder, what's the data is really like?" said Uri Landesman, president of Platinum Partners. "I'm wondering how bad the data's going to be. I'd be very surprised if it's good."
China is a key U.S. trade partner so its growth is important to U.S. companies. Its importance is magnified by the possibility that Europe's economy will go from slow growth to shrinkage, Landesman said.
Major European markets fell, although their declines were smaller after the U.S. inventory news came out. France's benchmark index lost 0.6%, Britain's and Germany's each dropped 0.2%.
Those losses came a day after Federal Reserve Chairman Ben Bernanke indicated there were no immediate plans to boost growth in the world's largest economy, wiping out gains made on China's surprise interest rate cut.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Ahead of the Bell: Wholesale Inventories - Yahoo Finance
WASHINGTON (AP) -- Businesses likely slowed their restocking of store shelves this year following a big jump in inventory building at the end of last year.
The Commerce Department will report on inventories for April on Friday at 10 a.m. Eastern time. Many economists were looking for another modest gain with analysts forecasting that sales at the wholesale level rose 0.4 percent, according to a survey by FactSet.
Businesses order more goods when they increase their stockpiles. That typically leads to more factory production and economic growth.
It would have taken roughly five weeks to exhaust all wholesale stockpiles at the March sales pace. That's considered a healthy time frame and suggests businesses will keep restocking to meet demand.
Inventories are expected to keep growing this year, though probably nowhere near the level seen at the end of last year.
Many businesses cut back on restocking last summer fearing that the economy was on the verge of another recession. When it became clear that it wasn't, they raced to rebuild stockpiles and keep pace with consumer demand.
In the first three months of this year, the economy grew at an annual rate of 1.9 percent. That gain was driven by the fastest growth in consumer spending since late 2010.
Consumers spent more partly in response to strong hiring. But hiring has slowed sharply over the past two months. In May, employers add just 69,000 jobs, the smallest increase in a year, and the unemployment rate edged up form 8.1 percent in April to 8.2 percent in March.
And wages have continued to lag as well. Sluggish job growth and weak pay raises threaten to drag on consumer spending. That would weaken growth. Consumer spending accounts for 70 percent of economic activity.
Stockpiles at the wholesale level account for about 27 percent of total business inventories. Stockpiles held by retailers make up about one-third of the total. Manufacturing inventories represent about 40 percent of the total.
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