U.S. wholesale stockpiles rose slightly in March

WASHINGTON - U.S. wholesalers expanded stockpiles modestly in March even though their sales fell for an eighth straightmonth.

Wholesale stockpiles edged up 0.1 percent following a 0.2 percent rise in February, the Commerce Department reported Friday. Sales at the wholesale level fell 0.2 percent after an even bigger 0.6 percent drop in February. Sales have fallen every month sinceAugust.

Economists are expecting sales to rebound in the coming months as the warmer weather lures shoppers back to shopping malls and auto dealerships. The pickup should fuel consumer spending, which accounts for 70 percent of economicactivity.

Higher demand at the retail level would then spur increased restocking at all levels of business includingwholesalers.

In March, auto stockpiles at the wholesale level were up 0.2 percent while furniture stockpiles increased 2.2 percent while inventories of computer equipment increased 1.7 percent. But stockpiles of lumber were down 0.8 percent and farm products were down 2.8percent.

Total wholesale inventories increased to a seasonally adjusted $574.5 billion in March, up 5.1 percent from a yearago.

Overall economic growth, as measured by the gross domestic product, barely grew in the January-March quarter. Many economists believe GDP will turn negative when the government issues a revision next month.

First quarter activity was hurt by an unusually severe winter, falling oil prices that triggered a big cutback in investments by energy companies and a rising dollar that has hurt U.S. exportsales.

But economists remain hopeful that growth will rebound with warmer weather and continued strong gains in employment. They forecast overall GDP growth of between 2 percent and 2.5 percent in the current April-June period and then climb above 3 percent in the second half of thisyear.