Inventories at wholesalers in September probably dropped at a slower pace, a Commerce Department report on Friday is expected to show. The 1 percent decrease, the smallest since January, suggests companies anticipate a pickup in sales and don’t want to deplete stockpiles much more.
The Standard & Poor’s 500 Index fell last week, marking the first monthly drop since February, after reports prompted concern that consumers will restrain the economic recovery.
In other reports this week, the number of contracts to buy previously owned homes were little changed in September, the first time in eight months they didn’t increase, according to the survey median. The National Association of Realtors’ report on pending home sales is due tomorrow.
Home sales have climbed in recent months, propelled in part by an US$8,000 tax credit for first-time buyers that is set to expire at the end of this month.
Senate Democrats want to extend the credit through April and expand it to allow higher-income Americans and some who already own homes to qualify for the incentive. The White House endorses the extension and lawmakers are expected to vote on the measure this week, according to Senate Majority Leader Harry Reid.
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