Businesses continued building up inventories in March

The latest strong figures should lead to strong factory orders in the next few months with the expectation of continued increases in industrial production and manufacturing employment, economists estimate. 

Wholesalers are keeping inventories lean, holding only 1.13 months of goods’ worth of stock in March, tying June 2008 for the lowest on record.

 Still, economists say the rate of stockpiling is normal as this stage of the economic recovery. 

In March, inventories posted a 1.1 percent rise at the manufacturing and the wholesale levels, while inventories held by retailers rose by 0.9 percent.

Sales increased at all levels in March, led by a 2.9 percent rise in sales at the wholesale level.

During the recession, which ended in June 2009, businesses cut back to contain costs but are now showing a willingness to rebuild those inventories as the economy recovers.