WASHINGTON (AP) -- U.S. companies boosted their stockpiles at the fastest rate in nine months as their sales grew. The gain in restocking indicates businesses anticipated a healthy holiday shopping season.
The Commerce Department says business inventories increased 0.7 percent in October, following a 0.6 percent gain in September. Sales rose 0.5 percent, above a 0.3 percent gain the previous month.
The increase could signal better growth in the October-December quarter than some economists had anticipated. Greater restocking boosts growth because it requires more factory production.
Growth is still likely to slow from the July-September quarter's robust 3.6 percent annual rate, half of which came from a jump in restocking.
But consumers appear to be spending more, a trend that will help keep the economy growing at solid pace.
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Links require admin approval before posting.
Questions may be sent to email@example.com. Please provide detailed information.