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.
Perkasie maps out power plan - msnbc.com
Perkasie has a strategy for future energy purchases.
The power supply master plan outlines methods to diversify and stagger the borough’s wholesale electric buys. The council will vote on the plan June 18.
“This is probably one of the most important things we’ll do,” Council President Matt Aigeldinger said, adding he is encouraged and enthused about the plan, which will help keep costs predictable and reliable.
Like several area municipalities, Perkasie buys electricity on the wholesale market and resells it to residents and businesses. That has been a way to keep rates low and generate funds for other projects.
In 2008, Perkasie signed a five-year deal with American Municipal Power to purchase wholesale electricity at $94.06 a megawatt-hour, an increase of about 81 percent from its previous contract. Later, the borough extended its contract for two more years, through 2015, at a lower rate.
To cover the increased costs, Perkasie had to raise customers’ electric rates by 42 percent in 2009 and 17 percent in 2010.
Since the unpopular rate hike, borough officials have said they no longer want to be stuck negotiating for wholesale power contracts at the last minute, nor do they want to be blindsided when the utility market spikes.
The master plan should help Perkasie avoid such pitfalls, by spreading purchases over time and seeking different contract terms and suppliers, said Dan Olpere, borough manager.
The plan outlines three stages for energy purchases.
The first stage looks at the near-term, filling the remaining power needs for 2014-15. Perkasie already has purchased about 77 percent of its power needs for those two years, Olpere said.
Over the next year or two, the borough will work on filling the remaining blocks of power.
The second stage deals with years 2016 and 2017 and calls for Perkasie to buy up to 70 percent of its energy needs for that period this year and get the remainder later on, Olpere said.
Stage three tackles the long-term purchasing goals.
The plan calls for Perkasie to buy 40 percent of its electric needs at least four years in advance, Olpere said. Thirty-five percent of its energy needs would be purchased in the mid-term, two to four years in advance.
Following this strategy, Perkasie would always leave 25 percent of its energy needs until a year or two before needed, leaving them flexible enough to take advantage of changing market conditions.
“I think that sounds very reasonable,” said council member Barbara Krantz. She liked that the borough wouldn’t be locked into buying all of its power needs too far in advance.
Perkasie residents seemed receptive to the proposed power supply plan, but wanted to know if it would help their monthly electric bills.
“I think it’s a good idea that we’re looking ahead, so we don’t get in another bind,” said Tom Myers of Perkasie. But, “What can we do to make cuts and ease the burden for residents?”
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.
Prices of flour, pulses fall - DAWN Group
THE wholesale commodity market witnessed minor price fluctuations but traders said it had nothing to do with the changes in tax rates and duties announced in the budget 2012-2013.
They said the Dandia Bazaar witnessed changes in price on account of improved imports, uninterrupted local supplies coupled with lingering low consumer demand.
One of the noticeable developments in view of improved supplies was the slight cut in flour prices by millers on June 8. The cut in prices was attributed to improved supply of wheat in the wholesale market.
A miller said the new rate of 50kg flour bag (No.2.5) was Rs1,490 as compared to Rs1,525 earlier. The decline in rate of 50kg bag of fine flour and super fine flour (maida) was Rs1,645 and Rs1,660 from Rs1,655 and Rs1,670 respectively.
For the last few weeks price of wheat was stable owing to improved supplies from Punjab and Sindh which had further improved stocks in the wholesale market.
The 10kg bag of flour (No.2.5) produced by mill was now priced at Rs298 as compared to Rs305 last week.
While analysing the impact of budget on prices, Chairman Karachi Wholesalers Grocers Association (KWGA), Anis Majeed said:
“Frankly speaking, the new budget has been made keeping in view the interest of consumers.”
The slight upward change in sugar rate is because of pre-Ramazan demand coupled with opening of tender by the Trading Corporation of Pakistan (TCP) last week. Some retail market buyers had turned up to purchase sugar for Ramazan which is starting from next month.
Many retailers despite having old stocks purchased at lower prices were charging Rs58 per kg in the markets as compared to Rs55 per kg last week.
Anis said the price of masur and mash had dropped due to over imports. The wholesale rates had not yet seen any flare up in view of the persistent devaluation of the rupee against the dollar.
The impact of costlier imports on account of depreciating rupee against the greenback might be witnessed in the future. In case the price of pulses go up in the international market prices of local pulses would rise further.
The Economic Survey had presented a grim picture of production of local pulses. Gram production during July-March 2011-12 fell to 291,000 tons as compared to 496,000 tons in the same period last year owing to unfavourable weather conditions.
Production of masoor declined to 11,600 tons as compared to 13,300 tons last year, mash production also dropped slightly to 10,900 tons from 11,300 tons while production of moong improved 22 per cent to 93,000 tons from 76,200 tons last year.
Retailers in various localities were making huge profits from consumers who were unaware of the wholesale prices. The wholesale rate of gram pulse was Rs93 per kg but retailers were charging Rs110-125 per kg, price of moong was Rs108 per kg but its retail price hovered around Rs115—140 per kg in various markets, while price of masur being Rs62 per kg, the consumers were paying Rs86-100 per kg, mash available at Rs82 per kg in the wholesale rate was selling between Rs93 and Rs100 per kg at retail shops.
Traders in their post-budget reaction had not anticipated any cut in prices of pulses and wheat rates in view of no sales tax.
Ghee and cooking oil prices for 16 kg/litre tins showed slight decline in prices due to falling oil prices in the world markets but the packers were yet to pass the benefit to consumers.
A retailer claimed that the price of 16 kg ghee tin had plunged to Rs2,650 from Rs2,700 followed by decline in 16 litre ghee tin to Rs2,480 from Rs2,545 last week.
Palm olien rate was now $1,010 per ton C&F as compared to $1,062 in the third week of May while RBD palm oil rate dropped to $980 per ton from $1,050 per ton. —Aamir Shafaat Khan
Morrison on Town shopping list - TEAMtalk
Huddersfield Town are keen to lure Reading defender Sean Morrison back to the club following their promotion to the championship.
Morrison joined the Terriers on loan in January and went on to make 22 appearances, playing an integral part in the club's landmark season.
But the 21-year-old has now returned to the Premier League new boys, despite having made just one appearance in the League Cup since his arrival from Swindon Town 18 months ago.
And if Morrison is not going to be involved in Brian McDermott's plans next season, Huddersfield would be happy to offer the centre-half a return to the Galpharm Stadium.
"Sean has made it clear he loves it here and would like to play for us in the championship and we certainly love him, so we'll see what happens," Terriers coach Glyn Snodin said.
"In the first instance it's very much down to what Brian McDermott, the Reading manager, wants to do.
"Does he want to keep Sean for the top-flight campaign, does he want to sell him or is he prepared to loan him out again?
"Until we know the answer to those questions then we can't really progress anything, but we know Brian very well.
"He is a smashing fellow and we know there won't be any problems, he will just let us know honestly exactly where he stands."
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