US wholesale stockpiles up 1.1 per cent in April; steady gains point to stronger growth

WASHINGTON – U.S. wholesale businesses built up their stockpiles of goods in April, a sign that companies expect stronger economic growth in the coming months.

The Commerce Department says wholesale stockpiles expanded 1.1 per cent in April, following a 1.1 per cent gain in March. The result marks 10 straight months of rising inventories.

Sales at the wholesale level climbed 1.3 per cent, led by autos, furniture and pharmaceutical drugs. Sales rose 1.6 per cent in March. Year-over-year, sales are up 6.7 per cent.

Because sales have roughly kept pace with the higher inventories, companies will likely need to continue restocking their shelves to meet rising consumer and business demand. That should help to fuel faster economic growth as more factories crank up their production and the spending ripples through the broader economy.