U.S. wholesale inventories rose in September for the third consecutive month, indicating that wholesalers expect more demand from businesses and consumers, the government reported Friday. The Labor Department said wholesale inventories rose 0.4 percent, following a 0.8 percent increase in August, the biggest in seven months. Sales at wholesale businesses rose 0.6 percent in September, up from 0.4 percent the previous month. Inventories of computer equipment, machinery, food, and clothing rose in September. Strong restocking of inventories helped drive the economy's 2.8 percent annual growth rate in the July-September quarter. Increasing stockpiles contributed 0.8 percentage point to growth. Rising inventories help growth because it means factories have produced more goods. Rising sales among wholesalers show that businesses are unlikely to be holding too many unsold goods. However, the recent gains may not last, as consumers and businesses have been spending cautiously. If that continues, companies will not need to keep building inventories as the same pace as they did in the third quarter.
