Ahead Of The Bell: Wholesale Inventories

WASHINGTON (AP) — Businesses likely slashed wholesale inventories for a record 13th consecutive month in September. But analysts expect sales rose for a sixth straight month.

Steadily rising sales could encourage businesses to restock shelves, boost production and bolster an economic recovery. The concern is that consumer spending, which accounts for 70 percent of economic activity, could falter as various government stimulus programs begin to wane.

Economists surveyed by Thomson Reuters expect inventories held by wholesalers dropped 1 percent in September, following a 1.3 percent decline in August.

Wholesale sales likely rose 0.6 percent, down from a 1 percent gain in August, which was the biggest increase since June 2008.

The Commerce Department is scheduled to release the report at 10 a.m. EST Friday.

Car sales soared in August because of the government's Cash for Clunkers program. But sales fell sharply in September after the incentives program ended.

General Motors Co. reported that its sales plunged 45 percent in September from the previous year, while Chrysler Group LLC reported a 42 percent decline. Ford Motor Co. reported a 5.1 percent decline.