JIT inventory management being thrown out under rising inflation:
(from Bloomberg)
U.S. Economy: May Business Inventories Rise 0.8%
Washington: Inventories at U.S. factories, wholesalers and
retailers rose in May at the fastest pace in six months as businesses bet sales would pick up in the second half of the year, government figures showed today.
Inventories rose 0.8 percent in May, reflecting increased stockpiles of autos, clothing and general merchandise, after gaining 0.5 percent in April, the Commerce Department said.
Business sales increased 1 percent in May after falling 0.6
percent the month before.
May's increase in inventories was the largest since a
0.9 percent gain last November, suggesting ``businesses are still very confident'' about the economy, said Tim O'Neill, chief economist at Bank of Montreal in Toronto.
Treasury securities fell and stocks were mixed after the report on concerns that Federal Reserve policy-makers will conclude the economy isn't slowing as much as they'd prefer. The U.S. Treasury's 10-year note fell 13/32 point, pushing up its yield 6 basis points to 6.15 percent. The Dow Jones Industrial
Average fell 8 points, or 0.1 percent, to close at 10804.27, while the Nasdaq Composite Index rose 29 points, or 0.7 percent, to close at 4274.74.
bloomberg.com |
