WASHINGTON (AP) -- 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.
Tri-State fights new pollution regulations - Durango Herald
More than 20 years in the making, the standards represent the first time the federal government has enforced limits on mercury, arsenic and other gases and particles released by the burning of fossil fuels, but Jim Van Someren, spokesman for Tri-State, believes the standards are a prime example of unnecessary regulation.
Shopping molls flee to Spain after Harrods theft - Daily Record
Jun 10 2012 By Russell Findlay, Sunday Mail
Generic Harrods image
POLICE hunting shopping molls Annette Daniel and Jean McGovern fear the thieves have fled to Spain.
The career criminals decided to sun themselves on the Costa del Sol while the heat is on at home.
We told last week how Daniel, McGovern and three gang members were being probed over a £24,000 designer dress theft from Harrods.
CCTV images of the gang at work in the posh store in London’s Knightsbridge have been passed to the Metropolitan Police.
But the prime suspects in the robbery have now fled the UK for Marbella.
One source said: “The heat caused by the Harrods job is intense and they decided to get out as quickly as possible.
“They’ll have to return at some point but I don’t think they will be in a hurry. If I was a shopkeeper in Marbella, I’d be keeping my eyes peeled for a pair of middle-aged Scottish women.”
Marbella has a string of designer stores including Carte Ingles in Puerto Banus, which carries top lines such as Prada and Tommy Hilfiger.
Last week we revealed four Roberto Cavalli and Ralph Lauren frocks had been nicked from Harrods. The store – feared by thieves for its stringent security – didn’t notice they were missing until the following day.
Daniel, 50, and McGovern, 45, who both have lengthy criminal records, are suspected of conducting the theft with gang members Roberta Burke, 48, Julie Tomlin, 32, and John Thomson.
The pair – members of Glasgow crime clans – run a team of professional thieves who travel around the UK.
No comments:
Post a Comment