U.S. wholesale inventories unexpectedly rose in October for the first time in more than a year, the government reported Wednesday, suggesting that businesses will start restocking depleted supplies, helping to support the fragile economic recovery. The Commerce Department said wholesale inventories rose 0.3 percent in October, ending a 13-month decline. Inventories had fallen 0.8 percent in September. Despite October"s slight rise, wholesale inventories at $326.1 billion were still 13.5 percent below the year-ago level. But the October increase marked the first gain since a 0.7 percent rise in August 2008. Sales at the wholesale level rose a stronger-than-expected 1.2 percent in October, following a 1.3 percent increase the previous month. It was the seventh consecutive month that sales at the wholesale level have risen. Steadily rising sales should encourage businesses to restock inventories and increase production. However, economists are concerned that the rebound could stall if consumer spending, which accounts for two-thirds of economic activity, weakens amid continued high unemployment. Wholesale inventories are goods held by distributors who generally buy from manufacturers and sell to retailers. They comprise about 25 percent of all business inventories. Factories hold about one-third of inventories, and retailers hold the rest. --SPA
