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Automakers sold new vehicles at a record pace last month, depleting inventories.
"What we're seeing are orders that are meeting real demand or replacing depleted inventory.
Auto production is scheduled to expand to rebuild depleted inventories and housing activity remains healthy.
The strong sales depleted inventories more than expected, prompting G.M. to increase production for the third quarter.
Increasing activity to date had largely been because of the replenishment of depleted inventories.
Imports rose 3.6percentt after a resurgence of consumer spending in the final quarter of 2001 had depleted inventories.
Corporate profitability has been boosted by job cuts, pay cuts and a drive to restock depleted inventories.
Economists said both numbers were poised to increase because construction permits were still rising and manufacturers had depleted inventories.
In addition, businesses are rebuilding depleted inventories, helping strengthen output, and exports are increasing, particularly to Asia.
Moreover, companies are restocking depleted inventories, and China's stimulus spending is generating one-time demand for imports.
A significant part of those gains may reflect the need to fill depleted inventories, rather than a surge in consumer demand.
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CEO of Professional Science Editing for Scientists @ prosciediting.com