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Wholesale stockpiles grew 0.8 percent in July, 19th consecutive gain, but sales flat
WASHINGTON (AP) ' Wholesale businesses boosted their stockpiles for a 19th consecutive month but sales were flat. Faltering demand could force businesses to cut back on orders when the economy is at risk of another recession.
The Commerce Department says wholesale inventories rose 0.8 percent in July. But sales were unchanged in the month, the poorest showing since a 0.3 percent drop in sales in May.
The weakness in sales could shake business confidence and cause them to cut back on their restocking. Still, economists say sales will rebound in coming months as the economy mounts a modest recovery from extremely weak growth in the first half of this year.