Wholesale stockpiles rose 0.8% in July!
WASHINGTON (PNN) - September 9, 2011 - Wholesale businesses boosted their stockpiles for a 19th consecutive month but sales were flat. Faltering demand could force businesses to cut back on orders while the U.S. economy continues to be mired in the Second Great Depression.
The Commerce Department says wholesale inventories rose 0.8% in July, but sales were unchanged in the month, the poorest showing since a 0.3% drop in sales in May.
The weakness in sales could shake business confidence and cause them to cut back on their restocking. Still, economists keep hoping that sales will rebound in coming months as the economy mounts a modest recovery from extremely weak growth in the first half of this year.