WASHINGTON — U.S. wholesale businesses restocked faster 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 This material may not be published, broadcast, rewritten or redistributed.
Wholesale businesses restocked faster in April - Post-Crescent
WASHINGTON (AP) — Wholesale businesses restocked faster 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% at the wholesale level in April, double the March gain. Sales by wholesale businesses jumped 1.1% 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% 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%.
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 consumers and businesses.
Weaker job creation in April and May could force some to scale back spending. And pay has risen just 1.7% 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% 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% of total business inventories. Stockpiles held by retailers make up about one-third of the total. Manufacturing inventories represent about 40% of the total.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
West Cumbria shopping arcade all set for go-ahead - News and Star
Last updated at 15:26, Friday, 08 June 2012
Plans for a shopping arcade which would create 30 jobs in Cockermouth town centre look set to be approved next week.
Cockermouth town council snubbed plans to build the arcade of shops, offices and a cafe in Station Street when they met last week.
But Allerdale Council’s development panel members are being recommended to approve the proposal, by Mitchells, when they meet on Tuesday.
Mitchells wants to transform Tithe House, which housed the former JobCentre, into the arcade, but town councillors say that empty shops on Main Street should be filled first.
Five letters of objections have been submitted to the council, with concerns over the access to the centre being dangerous, competition to other town businesses and the fact that there are empty shop units in Cockermouth.
Cockermouth Civic Trust has also objected to the proposals saying it will be in direct competition with shops on Main Street.
However, John Rockcliffe, Mitchells director and head of its land agency,said that he didn’t see the arcade as competition for the Main Street businesses because they were in a prime location.
“If we get the go-ahead, 30 jobs will be quite a boost for the town,” added Mr Rockcliffe.
Mark Wise, Mitchells director and auctioneer, said it would “help broaden the town centre and bring people up to this end of town and increase the whole retail experience.”
The Tithe House building provided a lifeline for Cockermouth businesses after the November 2009 floods.
It became known as Main Street at Mitchells when local traders took up the company’s invitation to open units there.
In its planning application, Mitchells said it had looked at a number of empty units in Station Street, Main Street, Market Place, Market Street and Castlegate, but none had the floor space required by the company.
It said it wanted a high quality, modern retail facility that would increase consumer choice, improve the range of facilities and bring investment into the town without having a significant adverse impact on trade or turnover in the town.
Mr Rockliffe said the arcade would be aimed at traders wanting small retail units with a short lease, as they could not afford the high prices and longer leases of units elsewhere.
JBarwise@cngroup.co.uk
First published at 11:26, Friday, 08 June 2012
Published by http://www.newsandstar.co.uk
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