U.S. business inventories rose in May, suggesting restocking will still be a boost to growth in the second quarter even as stocks at non-automobile retailers rose marginally.
The Commerce Department said on Tuesday inventories increased 0.5 percent after rising 0.6 percent in April.
Economists polled by Reuters had forecast inventories, which are a key component of gross domestic product changes, rising 0.6 percent in May. Retail inventories, excluding autos, which go into the calculation of GDP, edged up 0.1 percent after a similar gain in April.
A sharp slowdown in the pace of inventory accumulation helped to weigh down on the economy, which contracted at a 2.9 percent annual pace in the first quarter.