U.S. businesses boosted stockpiles 0.4% in December

Companies restocked at a faster pace in December, a positive sign that they expect consumers to step up spending. Business stockpiles grew 0.4% in December, the Commerce Department reports. That followed a similar gain in November. Companies are building up their stockpiles again after cutting them over the summer amid recession fears. Higher inventories require more production, which boosts economic growth. It also suggests companies expect more sales. Rising inventories were a key reason growth accelerated in the final three months of last year. Still, some economists expect the restocking to slow this year. Wholesalers reported a 1% increase in inventories. Retailers reported a 0.2% gain and manufacturers 0.1%. Inventories rose to a seasonally adjusted $1.56 trillion in December. That’s 18% above the low point reached in 2009, just after the recession ended. Rising sales are keeping stockpiles from getting too high. If companies feel their inventories are excessive, they could cut back on orders, slowing the economy.