US July wholesale inventories jump 1.3 pct

WASHINGTON, Sept 10 (BestGrowthStock) – U.S. wholesale inventories
surged by the largest amount in two years in July, a government
report said on Friday, in a sign firms were anticipating enough
demand to boost stock this summer.

Inventories jumped 1.3 percent, the steepest gain since July
2008, and more than three times the 0.4 percent increase
analysts had anticipated, a Commerce Department report showed.

Inventories are a key component of gross domestic product
changes over a business cycle, and the rebuilding of
merchandise stock from record low levels has been a key driver
of the economy’s recovery from the worst recession since the
1930s.

Economic data suggest the recovery may have lost steam over
the summer. However, Friday’s report showed wholesale sales
rose by a larger-than-expected 0.6 percent in July, suggesting
that concerns inventories might be sitting on shelves gathering
dust may not be justified.

The inventory-to-sales ratio, which measures how long it
would take to clear shelves at the current sales pace, edged up
to 1.16 months’ worth. It was the highest since February, but
was down from 1.27 months’ worth a year ago.
(Reporting by Mark Felsenthal, Editing by Andrea Ricci)

US July wholesale inventories jump 1.3 pct