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US businesses boost stockpiles modest 0.2 percent

In this Sept. 19, 2014 photo, workers assemble a completed body armor units at the Point Blank Body Armor factory in Pompano Beach, Fla. The Commerce Department reports on business stockpiles in October on Thursday, Dec. 11, 2014. (AP Photo/J Pat Carter)
In this Sept. 19, 2014 photo, workers assemble a completed body armor units at the Point Blank Body Armor factory in Pompano Beach, Fla. The Commerce Department reports on business stockpiles in October on Thursday, Dec. 11, 2014. (AP Photo/J Pat Carter) In this Sept. 19, 2014 photo, workers assemble a completed body armor units at the Point Blank Body Armor factory in Pompano Beach, Fla. The Commerce Department reports on business stockpiles in October on Thursday, Dec. 11, 2014. (AP Photo/J Pat Carter)

By Associated Press 1 min read

WASHINGTON (AP) – U.S. businesses added to their stockpiles at a slower pace in October as sales were weak for a third straight month.

The Commerce Department says businesses boosted stockpiles 0.2 percent in October after a 0.3 percent September gain.

Business sales dropped 0.1 percent in October after no gain in September and a 0.4 percent drop in August.

The string of weak sales reports had raised concerns about whether businesses might start cutting back on their restocking in the face of falling demand. But in a separate report, retail sales posted a better-than-expected 0.7 percent rise in November, a welcome sign of a rebound in consumer demand at the start of the holiday shopping season.

The rebound in consumer demand should spur further inventory restocking and provide support for economic growth.