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US wholesale inventories rise slightly more than initially estimated
[WASHINGTON] US wholesale inventories rose slightly more than initially thought in August.
The Commerce Department said on Wednesday wholesale inventories rose 1.0 per cent instead of the 0.8 per cent initially reported last month. Stocks at wholesalers in July rose 0.6 per cent.
Inventories rose 5.3 per cent year-over-year as of August. The component of wholesale inventories that goes into the calculation of gross domestic product growth rose 0.7 per cent in August.
Given strong domestic demand, businesses are likely to boost stocks of goods, which should underpin production at factories. Economists expect inventory accumulation to significantly contribute to GDP growth in the third quarter.
In August, wholesale auto inventories rose 3.5 per cent after declining 1.0 per cent in July. Machinery inventories rose 0.5 per cent after rising 1.1 per cent in July. Stocks of farm products rose 4.9 per cent after a 2.1 percent increase in July. Petroleum inventories rose 0.5 per cent after declining 1.1 per cent in July.
Sales at wholesalers were up 0.8 per cent in August after a 0.2 per cent increase in July.
At August's sales pace it would take wholesalers 1.26 months to clear shelves, unchanged from July.