US wholesale stockpiles record smallest gain in 17 months

WASHINGTON (AP) — U.S. wholesale businesses increased their stockpiles in December at the slowest pace in 17 months, and sales were weak for a fifth month.

Wholesale stockpiles edged up a slight 0.1 percent in December, the smallest increase since a similar 0.1 percent rise in July 2013, the Commerce Department reported today. Inventories had been up 0.8 percent in November.

Sales at the wholesale level fell 0.4 percent in December, matching the drop in November. Sales have either fallen or stayed unchanged for five consecutive months.

The deceleration of stockpile growth in December could be a reaction to the sales slowdown, with businesses cutting back on restocking in the face of weaker demand. But economists remain optimistic that sales will rebound in 2015 and help push the economy forward.

That optimism stems from strong gains in employment, which should power consumer spending in the coming months.

Employers added 257,000 jobs in January after gains of 329,000 in December and 423,000 in November, the most robust three-month pace of hiring in 17 years.