U.S. wholesale inventories rose more than expected in April, which bolsters views of a sharp acceleration in economic growth in the second quarter.
The Commerce Department said on Tuesday wholesale inventories increased 1.1 percent after advancing by the same margin in March. The rise outstripped economists' expectations for only a 0.5 percent gain.
Inventories are a key component of gross domestic product changes. The component that goes into the calculation of gross domestic product—wholesale stocks excluding autos—increased 1.1 percent.
A sharp slowdown in the pace of restocking by businesses helped to sink economic growth in the first quarter, but a swing in inventories is expected in the April-June period.