WASHINGTON (AP) — U.S. companies boosted their stockpilesat the fastest rate in nine months in
October as their sales grew. Thegain in restocking indicates businesses anticipated a healthy
holidayshopping season.Business inventories increased 0.7 percent inOctober, the Commerce Department
said Thursday. That follows a 0.6percent gain in September. Sales rose 0.5 percent, above a 0.3
percentgain the previous month.The increase could signal better growthin the October-December quarter
than some economists had anticipated.Greater restocking boosts growth because it requires more
factoryproduction.Growth is still likely to slow from the July-Septemberquarter’s robust 3.6 percent
annual rate, half of which came from ajump in restocking.But consumers appear to be spending more, a
trend that will help keep the economy growing at solid pace.Aseparate report Thursday showed that retail
sales rose 0.7 percent inNovember, the biggest gain in five months. Americans spent more onbig-ticket
items such as cars, electronics, appliances and furniture.They also made more purchases online.Retail
sales have risen at ahealthy clip for two straight months. That suggests that steady hiringhas given
Americans greater confidence to spend more.The Octobergain in inventories comes after companies built up
huge stockpiles inthe July-September quarter. So far, however, economists say thatinventories don’t
appear to be outpacing sales. A measure of inventoriesas a percent of sales shows that stockpiles are in
line with historicalaverages.Still, stockpile changes are likely to contribute muchless to growth in the
final three months of the year — and maybe evensubtract from overall growth. That’s why many economists
forecast thatthe economy will expand at a 2 percent to 2.5 percent annual rate in theOctober-December
period.The business inventories report includesdata on stockpiles held by wholesalers, manufacturers and
retailers.Wholesale businesses increased their stockpiles 1.4 percent in October,the fastest pace in two
years. Retail inventories rose 0.8 percent andmanufacturers added 0.1 percent.Copyright 2013 The
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