US business inventories rebounded 0.3 per cent in May
Posted July 14, 2017 10:08 am.
Last Updated July 14, 2017 10:20 am.
This article is more than 5 years old.
WASHINGTON – U.S. businesses increased their stockpiles in May, while sales fell by the largest amount in 10 months.
The Commerce Department says business inventories rose 0.3 per cent, rebounding from a 0.2 per cent decline in April. Total business sales fell 0.2 per cent, the largest decline since a 0.3 per cent drop last July. Sales have been weak for the past three months.
When businesses increase stockpiles, it is generally seen as a sign of their confidence that sales will increase in the coming months. A decrease in inventories can be a sign of pessimism about future sales.
Economic growth slowed in the January-March quarter, in part because inventories subtracted from overall economic activity, but economists are looking for a rebound in the second quarter.
