US businesses boost stockpiles at modest pace as sales slow

WASHINGTON — U.S. businesses stockpiled more goods in warehouses and on store shelves in January, while sales growth slowed.

The Commerce Department says business inventories increased by a seasonally adjusted 0.3 per cent in January from the previous month. Stockpiles rose sharply at auto dealers and furniture stores. Sales, meanwhile, increased 0.2 per cent. That small gain followed a 2.1 per cent jump in December, the most in six years.

Businesses have largely cut their inventories in the past year, a trend that could boost economic growth. That’s because companies won’t be able to meet customer demand by using stockpiled goods. Instead, they will have to order more new products.

Stockpiles at retailers rose 0.8 per cent, however, while sales increased just 0.5 per cent. That compares to inventory growth of just 0.2 per cent among manufacturers.

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Christopher S. Rugaber, The Associated Press