Monday, November 15, 2010

Businesses Post Two-Year High on Inventories in September

"U.S. business inventories rose slightly more than expected in September as sales climbed to their highest level since October 2008, a government report showed on Monday, suggesting an upward adjustment to the third-quarter growth estimate.

The Commerce Department said inventories rose 0.9 percent to $1.40 trillion, the highest level since March 2009, after increasing by a revised 0.9 percent in August.

Markets had expected September inventories to rise 0.8 percent from a previously reported 0.6 percent increase in August.

Inventories are a key component of gross domestic product changes over the business cycle and have been a key driver of growth as the economy recovers from the worst downturn since the Great Depression."

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