U.S. business inventories increase, but pace slowing – Reuters

by | Sep 15, 2022 | Business

Warehouse workers deal with inventory stacked up to the ceiling at an ABT Electronics Facility in Glenview, Illinois, U.S. December 4, 2018. REUTERS/Richa NaiduRegister now for FREE unlimited access to Reuters.comRegisterWASHINGTON, Sept 15 (Reuters) – U.S. business inventories increased in July, but the pace has slowed considerably from prior months, likely as cooling demand amid higher interest rates forces companies to be cautious.Business inventories increased 0.6% after rising 1.4% in June, the Commerce Department said on Thursday. Inventories are a key component of gross domestic product. July’s increase was in line with economists’ expectations.Inventories increased 18.4% on a year-on-year basis in July.Register now for FREE unlimited access to Reuters.comRegisterRetail inventories increased 1.2% in July, instead of 1.1% as estimated in an advance report published last month. That followed a 2.0% increase in June.Motor vehicle inventories raced 3.5% as estimated last month. They climbed 3.3% in June.Retail inventories excluding autos, which go into the calculation of GDP, increased 0.4% as estimated last month.A sharp slowdown in the pace of inventory accumulation in the second quarter relative to the January-March quarter’s brisk rate weighed on GDP last quarter. The economy contracted at a 0.6% annualized rate in the second quarter after shrinking at a 1.6% pace in the January-March period.Wholesale inventories increased 0.6% in July. Stocks at manufacturers gained 0.1%.Business sales dropped 0.9% in July after rising 1.2% in June. At July’s sales pace, it would take 1.32 months for businesses to clear shelves, up from 1.30 in June.Register now for FREE unlimited access to Reuters.comRegisterReporting by Lucia Mutikani; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles. …

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