US business inventories unchanged in June

US BUSINESS inventories were unchanged for a second straight month in June as companies continued to carefully manage stocks in anticipation of weak demand because of higher interest rates.

Economists polled by Reuters had expected the Commerce Department would report a 0.1 per cent gain in business inventories on Tuesday (Aug 15).

Inventories, a key component of gross domestic product, increased 2.0 per cent on a year-on-year basis in June.

Private inventory investment was estimated to have made a small contribution to GDP in the second quarter after being a major drag in the first three months of the year. The economy grew at a 2.4 per cent annualized rate in the April-June period.

Retail inventories increased 0.7 per cent in June, as estimated in an advance report published last month. They rose 0.6 per cent in May. Motor vehicle inventories advanced 1.5 per cent, as estimated last month. They increased 2.7 per cent in May. Retail inventories excluding autos, which go into the calculation of GDP, climbed 0.3 per cent instead of the previously reported 0.4 per cent rise.

Wholesale inventories fell 0.5 per cent while stocks at manufacturers were unchanged.

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Business sales dipped 0.1 per cent after edging up 0.1 per cent in May. At June’s sales pace, it would take 1.40 months for businesses to clear shelves, unchanged from May. REUTERS