Wholesale Inventories Post Smallest Rise in 7 Months
U.S. wholesale inventories in June posted their smallest rise in seven months as sales rebounded more than expected, a government report showed on Wednesday, pointing to a moderate build-up in unsold goods, which should support manufacturing.
Total wholesale inventories rose 0.6 percent to a record $458.7 billion, the Commerce Department said, following a 1.7 percent rise in May.
Economists polled by Reuters had expected stocks of unsold goods at U.S. wholesalers to rise 1 percent.
Inventories are a key component of gross domestic product changes and June's moderate rise in wholesale stocks should be positive for manufacturing in the second half. Wholesale inventories in June were supported by a 4.3 percent rise in motor vehicle stocks and computer equipment, which rose 3.5 percent.
Sales at wholesalers increased 0.6 percent to an all-time high of $395.8 billion after falling by a revised 0.3 percent fall in May.
Analysts had expected sales at wholesalers to rise 0.3 percent after a previously reported 0.2 percent drop in May.
At June's sales pace, it would take 1.16 months to clear shelves, unchanged from May.