Us business inventories point to slower q1 growth
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U.S. business inventories rose a bit less than expected as sales rebounded, suggesting a slow pace of restocking could weigh on economic growth in the first quarter. The Commerce Department
said on Monday inventories increased 0.4 percent in February after rising by the same margin in January. Read MoreTorrid March retail sales melt winter's effects Economists polled by
Reuters had forecast inventories increasing 0.5 percent in February. An employee operates a forklift at the distribution center of the Oregon Freeze Dry facility in Tangent, Oregon. Leah
Nash | Bloomberg | Getty Images Inventories are a key component of gross domestic product changes. Retail inventories, excluding autos, which go into the calculation of GDP, rose 0.2
percent. That followed a 0.6 percent rise in January. Motor vehicle inventories fell for a second straight month. Businesses accumulated too much stock in the second half of last year and
are placing fewer orders with manufacturers while they work through the pile of unsold goods. That, together with severe weather, the expiration of long-term unemployment benefits and food
stamps cuts, is expected to weigh on first-quarter GDP growth. Inventories were neutral to fourth-quarter GDP growth. Read MoreWalgreens urged to leave US to gain tax benefit In February,
business sales increased 0.8 percent. Sales had declined 1.1 percent in January. At February's sales pace, it would take 1.31 months for businesses to clear shelves. That was unchanged
from January and was the highest ratio since September 2009. —_By Reuters_