U.S. wholesale inventories rose more than expected in April as stabilizing oil prices helped lift sales by the most in more than a year, giving wholesalers an incentive to accumulate more stocks. (Tweet This)
The Commerce Department said on Tuesday wholesale inventories increased 0.4 percent. Stocks at wholesalers were revised to show a 0.2 percent rise in March instead of the previously reported 0.1 percent gain.
Economists polled by Reuters had forecast wholesale inventories rising 0.2 percent in April.
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Inventories are a key component of gross domestic product changes. The component of wholesale inventories that goes into the calculation of GDP—wholesale stocks excluding autos—rose 0.2 percent, suggesting inventories will probably be a modest boost to growth in the second quarter.