3 Latest Reports Suggest More Economic Growth

Wholesale prices remained under control in January, the government said Friday in one of three economic reports suggesting continued gradual economic improvement.

The other reports showed that business sales jumped sharply in December, and consumer confidence for February is up from January.

The Labor Department said its producer price index edged up 0.2% in January after a 0.1% advance a month earlier and 0.1% declines in October and November.

But the report showed that much of the increase was in energy products and automobiles. Food prices were down. At an annual rate, wholesale inflation was running at 2%, just slightly more than the 1.6% in 1992.

At the same time, the Commerce Department said business sales shot up 1.9% in December, outpacing the 0.4% buildup in inventories, including a 1.7% jump in retail stockpiles.

Analysts were unable to explain the retail backlog surge, which occurred at the same stores that were boasting an increase of 0.8% in sales during the strongest holiday shopping season in four years.

Still, the overall inventories-to-sales ratio fell to 1.46, the lowest level in at least 10 years. That means that it would take 1.46 months to exhaust backlogs at the December sales pace.

Slim inventories often mean increased production and more jobs as businesses try to meet increased demand as the economy picks up.

In the third report, the University of Michigan’s preliminary consumer sentiment index for February rose to 89.8, up from January’s 89.3, according to people with access to the survey.

Producer Price Index (For finished goods)

Seasonally adjusted change from prior month. Jan., ‘93: +0.2% Dec., ‘92: +0.1% Jan., ‘92: 0.0% Source: Labor Department