US June business inventories highest in a year

WASHINGTON, Aug 13 (BestGrowthStock) – U.S. business inventories
rose in June to their highest level in a year while sales fell,
suggesting consumer demand may have been weaker than firms had
anticipated.

The Commerce Department said on Friday inventories
climbed 0.3 percent to $1.36 trillion, the highest since May
2009. That followed a 0.2 percent gain in the prior month, and
exceeded Wall Street forecasts for a 0.2 percent rise.

Inventories are a key component of gross domestic product
changes over the 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.

But some economists worry waning demand might leave some
firms with more goods than they can sell, and the report showed
business sales falling 0.6 percent to $1.08 trillion, the
lowest reading since February.

The inventory-to-sales-ratio, which measures how long it
would take to clear shelves at the current sales pace, was 1.26
months, the highest since a matching ratio in February 2010.

(Reporting by Pedro Nicolaci da Costa, Editing by Andrea
Ricci)

US June business inventories highest in a year