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Wholesale inventories rise, and so do job openings

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 productwholesale stocks excluding autosincreased 1.1 percent.

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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.

Data last week showed a rise in stocks at manufacturers in April and further gains are likely after a surge in automobile sales in May depleted stocks of some vehicle models.

The economy contracted at a 1.0 percent annual pace in the January-March period as inventories subtracted 1.6 percentage points from GDP. Growth this quarter is forecast topping a 3.0 percent pace, but the sturdy gains in wholesale inventories in April could prompt some economists to raise their GDP estimates.

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Sales at wholesalers increased 1.3 percent in April after rising 1.6 percent the prior month. At April's sales pace it would take 1.18 months to clear shelves, unchanged from March.

photovideostock | Vetta | Getty Images

Job openings rise

In a separate report, data showed there were 4.5 million job openings on the last business day of April, compared to 4.2 million in March, the U.S. Bureau of Labor Statistics reported.

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The rate of hires checked in at 3.4 percent, while the separations rate registered at 3.3 percent—both unchanged in April.

The number of job openings rose for total private and was little changed for government, the BLS said. In retail trade and in arts, entertainment, and recreation, the number of job openings increased in April.

By Reuters. CNBC contributed to this report.

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