US businesses increased stockpiles more slowly in February, a sign they expected weaker sales

WASHINGTON – U.S. companies restocked their shelves at a much slower pace in February than January, a sign they expected consumer and business spending to weaken.

The Commerce Department says business stockpiles increased only 0.1 per cent in February. That’s the smallest gain since June and down from a 0.9 per cent increase in January, which was revised slightly lower.

Total business sales rose at a healthy 1.2 per cent pace in February, mostly because retail sales grew. But a separate report Friday showed retail sales fell in March.

Restocking helps drive economic growth. When companies order more goods, factory output increases. Economists had expected a bigger gain in stockpiles in February, so the lacklustre increase could lead some to pare back their economic growth forecasts for the January-March quarter.