UPDATE 1-U.S. wholesale inventories exceed expectations in Oct
WASHINGTON, Dec 10 (Reuters) - U.S. wholesale inventories rose more than expected in October, showing little sign of businesses pulling back after they aggressively accumulated stock in the third quarter. The Commerce Department said on Tuesday wholesale inventories increased 1.4 percent after a revised 0.5 percent rise in September. Economists polled by Reuters had expected stocks at wholesalers to rise 0.3 percent in October after a previously reported 0.4 percent rise in September. Inventories are a key component of gross domestic product changes. Excluding autos, wholesale inventories increased 1.3 percent. This component goes into the calculation of gross domestic product. The government last week reported that businesses accumulated $116.5 billion worth of inventories during the third quarter, the most since the first quarter of 1998. That led many economists to anticipate a slowdown in the pace of inventory accumulation this quarter as businesses try to align stocks to sluggish demand. This could put a dent in fourth-quarter GDP growth. Sales at wholesalers rose 1.0 percent in October after a revised 0.8 percent gain the prior month. Economists had expected sales to rise 0.4 percent in October. At October's sales pace it would take 1.18 months to clear shelves, unchanged from September.
- Ten countries scour sea for Malaysia jet lost in 'unprecedented mystery' |
- Confrontation in Ukraine as diplomacy stalls |
- Missing Malaysian jet may have disintegrated in mid-air: source |
- Mexico kills drug kingpin reported dead years ago: official
- Pistorius vomits in court at Steenkamp autopsy details |