US businesses cut stockpiles in April
Posted June 14, 2017 10:09 am.
Last Updated June 14, 2017 1:01 pm.
This article is more than 5 years old.
WASHINGTON – U.S. businesses decreased their stockpiles in April by the largest amount since October, while sales were flat.
The Commerce Department says business inventories fell by a seasonally adjusted 0.2 per cent in April, following March’s gain of 0.2 per cent. Sales were flat after contracting 0.1 per cent in March.
Economists had expected a slight decline in April inventories. But many remain confident that inventory growth will rebound and help support overall economic growth in the current quarter.
Economic growth as measured by the gross domestic product slowed in the January-March quarter, in part because inventories subtracted from overall economic activity. Annual GDP growth was just 1.2 per cent in the first quarter. But economists think second quarter GDP growth will strengthen significantly.
