U.S. Business Inventories Report

WASHINGTON (Reuters) – U.S. business inventories increased moderately in June, with a notable surge in stocks at retailers offset by mild gains at wholesalers.

Inventories rose 0.3% after a 0.5% increase in May, as reported by the Commerce Department’s Census Bureau on Thursday. This rise aligns with economists’ expectations and marks an important component of gross domestic product (GDP).

In June, inventories rose 2.1% year-on-year. Private inventory investment added 0.82 percentage points to the economy’s 2.8% annualized growth rate in the second quarter, reversing two consecutive quarters of decline.

Retail inventories surged 0.9% in June, exceeding the 0.7% estimate from last month’s advance report. They rose 0.8% in May. Motor vehicle inventories also climbed 2.2%, up from 1.8% initially reported, and advanced 2.4% in May.

Retail inventories excluding autos—which are used in GDP calculations—rose 0.2%, following a 0.1% gain in May. Wholesale inventories increased 0.2% in June, while stocks at manufacturers remained unchanged.

Business sales fell 0.1% in June, following an unchanged result in May. At June’s sales pace, businesses would take 1.38 months to clear their shelves—unchanged from May.