WASHINGTON (AP) – U.S. wholesalers expanded stockpiles modestly in March even though their sales fell for an eighth straight month.
Wholesale stockpiles edged up 0.1 percent following a 0.2 percent rise in February, the Commerce Department reported Friday. Sales at the wholesale level fell 0.2 percent after an even bigger 0.6 percent drop in February. Sales have fallen every month since August.
Economists are expecting sales to rebound in the coming months as the warmer weather lures shoppers back to shopping malls and auto dealerships. The pickup should fuel consumer spending, which accounts for 70 percent of economic activity.
Higher demand at the retail level would then spur increased restocking at all levels of business including wholesalers.
In March, auto stockpiles at the wholesale level were up 0.2 percent while furniture stockpiles increased 2.2 percent while inventories of computer equipment increased 1.7 percent. But stockpiles of lumber were down 0.8 percent and farm products were down 2.8 percent.