WASHINGTON (AP) — U.S. companies increased their stockpiles at a faster rate in April, despite modest growth in sales.
The Commerce Department says business stockpiles grew 0.4 percent in April, slightly better than March's pace. Sales were up a modest 0.2 percent in April, matching the March increase.
When businesses step up restocking, they order more goods. That generally leads to increased factory production and higher economic growth.
Slower growth in inventories held back growth in the January-March quarter. In the first three months of this year, the economy grew at an annual rate of 1.9 percent.
Total inventories rose to $1.58 trillion in April, 19.7 percent higher than the low reached in September 2009, a period when businesses were slashing inventories in response to a deep recession.