Businesses Boost Stockpiles For 14th Consecutive Month In February, Sales Rise

[Purveyor]

WASHINGTON (AP) — Businesses added to their stockpiles in February for a 14th straight month and sales increased for an eighth consecutive month. The gains suggest factory orders will rise in the coming months.

Business inventories rose 0.5 percent in February, the Commerce Department reported Wednesday. Combined sales by manufacturers, wholesalers and retailers increased 0.2 percent during the month.

Healthy gains in sales and inventory restocking should translate into strong orders placed with U.S. factories.

Manufacturing activity has increased in all but two months since the recession ended in June 2009, according to the Institute for Supply Management. Factories have benefited not only from increased U.S. demand but also from stronger export sales.

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http://www.ky3.com/sns-ap-us-business-inventories,0,3636844.story

[Hawkowl]

1. Indicates factory orders should FALL

If businesses have increased their inventories for the past 14 months it means they have consistently overestimated demand for 14 months and should get a clue and start decreasing their orders until the inventory is drawn down.