WASHINGTON (Reuters) – U.S. wholesale inventories rose more than expected in February and sales at wholesalers reached their highest level since October 2008, brightening prospects for first-quarter economic growth.
Total wholesale inventories increased 0.6 percent, the Commerce Department said on Friday. The results topped market expectations for a 0.4 percent rise and prompted some economists to tweak their forecasts for first-quarter gross domestic product.
"The notable upturn in inventories suggests even stronger growth in the first quarter. We are now tracking just over 4 percent growth in the quarter, above our baseline forecast of 3.5 percent," said Michelle Meyer, an economist at Barclays Capital in New York.
Wholesale inventories in January rose by an upwardly revised 0.1 percent.
A sharp slowdown in the rate at which businesses depleted inventories contributed strongly to the economy's rebound from the worst downturn since the Great Depression of the 1930s.
