US wholesalers increase stockpiles just 0.3 per cent in December, smallest gain since last July

WASHINGTON – U.S. wholesale businesses increased their stockpiles in December at the slowest pace since last summer, another sign that the economy lost some momentum at the end of 2013.

The Commerce Department says wholesalers boosted stockpiles by 0.3 per cent in December from November, smallest gain since July.

Sales growth slowed to 0.5 per cent December after healthy gains of 1 per cent in November and 1.1 per cent in October.

Rising stockpiles boost economic growth because they reflect expanding production at factories. Bigger inventories accounted for more than 40 per cent of economic growth in the July through September period last year when gross domestic product increased at a robust 4.1 per cent annual pace.

The surge in stockpiles slowed the last three months of 2013, and overall growth fell back to a still-healthy 3.2 per cent.