NEW YORK, April 10 (Reuters) - The amount of U.S. commercial paper outstanding rose in the latest week to its highest since January, signaling growing demand for credit from companies to finance inventories and payrolls, data from the Federal Reserve showed on Thursday.
Seasonally adjusted U.S. commercial paper outstanding increased for a third straight week, growing by $4.5 billion in the week to April 9 to $1.038 trillion, according to central bank data.
Recent data showed U.S. employers have picked up the pace of hiring and continued to accumulate inventories, supporting the view the economy is regaining some of the momentum lost during a harsh winter.
Higher issuance among non-banks resulted in the week’s increase in CP outstanding.
Seasonally adjusted levels of this short-term debt from non-financial companies rose for a fourth consecutive week. It grew by $7.8 billion to $274.8 billion in the latest week.
Non-seasonally adjusted commercial paper outstanding, which some analysts consider a more reliable reading than the seasonally adjusted one since it has been distorted by the financial crisis, rose $7.9 billion to $1.049 trillion, which was the highest since late February.
U.S. non-seasonally adjusted foreign financial commercial paper outstanding rose $2.6 billion to $261.6 billion, while domestic financial CP slipped $400 million to $285.3 billion. (Reporting by Richard Leong; Editing by James Dalgleish)