P.M. BRIEFING : Inventories Rise on Sliding Sales
<i> From Times wire service</i> s
WASHINGTON —
Business inventories climbed 0.6% in July while business sales were falling 0.9%, the government reported today.
The combination of falling sales and rising inventories would normally spark fears about a possible economic slowdown as businesses cut back on production to work off the stockpile of unsold goods.
But economists noted that the figures were for July and other business indicators for August have shown a rebound in economic strength.
The Federal Reserve reported today that industrial production in August rose by a solid 0.3%, the biggest gain in four months, reflecting in part a boost in production at auto plants.
