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US business stockpiles grow 0.7 pct. in September

Associated Press Modified: November 14, 2012 at 11:00 am •  Published: November 14, 2012
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The inventory and trade data from the Commerce Department weren't included in the government's initial estimate of growth, released Oct. 26.

Wholesale stockpiles account for about 27 percent of total business inventories. Stockpiles held by retailers make up about one-third of the total and manufacturing inventories represent about 40 percent.

While growth this summer has improved, economists are still wary about the final three months of this year. Many are worried that companies will hold back on hiring and investment because of the "fiscal cliff," the package of tax increases and spending cuts slated to take effect early next year. Unless Congress and the White House agree to delay or replace the cliff, it could push the economy into recession in the first half of next year.

Recent reports, however, have shown signs of improvement. Hiring has picked up, which has boosted consumer confidence. Employers added 171,000 jobs in October and job gains in August and September were higher than first estimated. The unemployment rose to 7.9 percent from 7.8 percent as more of those out of work began searching for jobs.

A survey by the University of Michigan last week found that consumer sentiment improved for the fourth straight month to its highest level in five years.