US business inventories rise in August on retail stocks
Inventories rose 0.3% after a similar gain in July
US BUSINESS inventories increased in August, lifted by stocks at retailers, government data showed on Thursday (Oct 17).
Inventories rose 0.3 per cent after a similar gain in July, the Commerce Department’s Census Bureau said. The increase in inventories, a key component of gross domestic product, was in line with economists’ expectations.
Inventories advanced 2.4 per cent on a year-on-year basis in August. Private inventory investment contributed to the economy’s 3.0 per cent annualised growth rate in the second quarter.
Inventories and trade are the most volatile components of gross domestic product. August’s trade data last week suggested that trade could be a small drag on economic growth in the third quarter.
Retail inventories increased 0.6 per cent in August, revised up from the 0.5 per cent estimated in an advance report published last month. They increased 0.8 per cent in July. Motor vehicle inventories rose 0.8 per cent as previously reported. They advanced 1.2 per cent in July.
Retail inventories excluding autos, which go into the calculation of GDP, climbed 0.5 per cent instead of 0.4 per cent as reported last month. They gained 0.6 per cent in July.
Wholesale inventories gained 0.1 per cent in August and stocks at manufacturers also edged up 0.1 per cent.
Business sales slipped 0.2 per cent in August after rising 1.1 per cent in July. At August’s sales pace, it would take 1.38 months for businesses to clear shelves, up from 1.37 months in July. REUTERS
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