New Data Suggest Growth May Be Slowing

A buildup of inventories and an increase in claims for unemployment insurance indicate that the economy’s vigorous growth may be slowing, say some analysts. According to a Commerce Department report, inventories rose 0.4% in November to a seasonally adjusted $1.04 trillion, the 17th month without a decline. At the same time, sales slipped 0.2% to $758.1 billion. Economists said the production of goods that ended up on shelves and back lots probably added to growth in the final quarter of 1997, and they predict some slowing in production early this year as businesses sell off the stockpile. Meanwhile, the Labor Department said first-time claims for unemployment benefits rose 3,000 last week to 335,000. The slight increase followed two larger jumps and economists had been expecting a decline to around 320,000. Instead, the latest total marked the highest level since mid-August.