A report released by the Commerce Department on Wednesday showed wholesale inventories in the U.S. rose by slightly more than expected in the month of June.
The Commerce Department said wholesale inventories climbed by 0.7 percent in June after rising by an upwardly revised 0.6 percent in May.
Economists had expected inventories to increase by 0.6 percent compared to the 0.4 percent growth originally reported for the previous month.
The bigger than expected increase was partly due to a jump in inventories of non-durable goods, which surged up by 1.0 percent in June after climbing by 0.6 percent in May.
Significant increases in inventories of drugs, farm products, and miscellaneous goods more than offset a steep drop in inventories of petroleum.
The report said inventories of durable goods also rose by 0.5 percent in June following a 0.6 percent increase in the previous month.
Inventories of computer equipment, professional equipment and automotive goods showed notable increases during the month.
The Commerce Department also said wholesale sales climbed by 0.7 percent in June after edging down by 0.1 percent in May.
Sales of non-durable goods jumped by 1.4 percent after falling by 0.3 percent in May, as sharp increases in sales of drugs and alcohol offset decrease in sales of apparel and chemicals.
Meanwhile, the report said sales of durable goods were virtually unchanged in June after inching up by 0.1 percent in May.
With inventories and sales rising at the same pace, the inventories/sales ratio for merchant wholesalers in June was unchanged from the previous month at 1.29.
by RTT Staff Writer
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