WASHINGTON (AP) – U.S. businesses increased their stockpiles in April by the largest amount in nearly a year while their sales posted a second straight healthy advance.
The Commerce Department says inventories held by businesses rose 0.4 percent in April compared to March when stockpiles had risen a much smaller 0.1 percent. It was the largest increase since a 0.5 percent rise in May 2014.
Total business sales rose 0.6 percent in April following a similar 0.6 percent rise in March. The March performance had been the first sales increase after seven consecutive monthly declines.
The expectation is that further sales increases will bolster boost business confidence and lead companies to boost their stockpiling. The rise in stockpiles will support production gains at factories and overall economic growth.