WASHINGTON -- Businesses added to their stockpiles in March by the smallest amount in a year, another indication of a weakening economy.
The Commerce Department reported Tuesday that business inventories edged up a tiny 0.1% in March, the smallest advance since inventories were basically flat in March 2007.
The small rise was below the 0.4% increase that many economists were expecting. It indicated that businesses are holding back on adding to their stockpiles in the face of slowing demand.
If businesses get serious about restraining inventories, that would add another drag to economic growth, resulting in cutbacks in production.
The 0.1% rise in inventories held on shelves and back lots in March followed a much bigger 0.5% increase in March.
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The small amount of strength in March came from a 0.9% gain in inventories held by manufacturers. Inventories held by retailers dropped by 0.5% and wholesale inventories were down 0.1%.
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