US wholesale inventories rise in June

US WHOLESALE inventories increased in June, adding to economic growth in the second quarter.

The Commerce Department’s Census Bureau said on Thursday (Aug 8) that wholesale inventories rose 0.2 per cent in June as previously estimated. Stocks at wholesalers advanced by 0.5 per cent in May.

Economists polled by Reuters had expected that inventories, a key part of gross domestic product, would rise by an unrevised 0.2 per cent. Inventories edged up 0.1 per cent on a year-on-year basis in June.

The economy grew at a 2.8 per cent pace in the second quarter. That was double the growth pace in the first quarter. Private inventory investment added 0.82 percentage point to GDP growth in the April-to-June period after being a drag for the two previous quarters, which more than offset a 0.72 percentage point hit from a wider trade gap.

Wholesale motor vehicle inventories rose 0.8 per cent in June. Excluding autos, wholesale inventories advanced 0.1 per cent. This component goes into the calculation of GDP.

Sales at wholesalers fell 0.6 per cent in June after rising 0.3 per cent in May. At June’s sales pace it would take wholesalers 1.37 months to clear shelves, up from 1.35 months in May. REUTERS