US business restocking flat in March while sales fall 1.1 per cent, largest drop in 9 months
WASHINGTON – U.S. businesses left their stockpiles unchanged in March for a second month while their sales fell sharply.
The Commerce Department says business stockpiles showed no increase in March on a seasonally adjusted basis. Businesses hadn’t upped their restocking in February, either.
Sales fell 1.1 per cent in March compared with February when sales had risen 1 per cent.
A lack of inventory building could slow economic growth because it means businesses are ordering fewer factory-made goods.
But increased restocking at a time when sales are falling can also signal trouble for the economy, if businesses react by suddenly cutting back their stockpiles.
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