US corporate inventories rise, but pace slows

Warehouse workers work with floor-to-ceiling inventory at the ABT Electronics facility in Glenview, Illinois, USA, December 4, 2018. REUTERS/Richa Naidu

WASHINGTON (Reuters) – U.S. inventories rose in July, but the pace slowed significantly from the previous month.

Business inventories rose 0.6% from 1.4% in June, according to the Department of Commerce. Inventory is an important component of gross domestic product. July’s increase was in line with economists’ expectations.

July inventory increased by 18.4% year-on-year.

Retail inventories rose 1.2% in July, but not the 1.1% estimated in a preliminary report released last month. This follows his 2.0% increase in June.

Vehicle inventories increased by 3.5%, in line with last month’s estimate. They were up 3.3% in June.

Retail inventories, excluding cars, used to calculate GDP, rose by an estimated 0.4% last month.

The sharp slowdown in the pace of inventory build-up in Q2 compared to the strong period from January to March weighed on GDP last quarter. The economy contracted at an annualized rate of 0.6% in the second quarter after he contracted at a pace of 1.6% in the January-March period.

Wholesale inventories increased by 0.6% in July. Manufacturer inventories rose 0.1%.

Business sales fell 0.9% in July after rising 1.2% in June. At July’s sales pace, it takes him 1.32 months for businesses to clear their shelves, up from 1.30 months in June.

Reported by Lucia Mutikani.Edited by Andrea Ricci

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