June’s data show that US business inventories realized their largest increase in seven months as retailers continue to re-stock at an accelerated pace in reaction to an increase in demand for goods at home.
According to the Commerce Department business inventories climbed by 0.5 percent after an unrevised increase of 0.3 percent in May.
Inventories are considered an important component of the country’s gross domestic product. Retail inventories did even better, rising by 0.6 percent in June and the same percentage in May.
Stock of motor vehicles surged by 0.7 percent after an even higher rise of 1.2 percent in May.
Retail inventories, not including cars, which are included in the calculation for GDP, went up 0.5 percent, up from 0.2 percent in May.
Inventory investment did not have an impact on the 2.6 percent annualized growth rate of the second quarter of this year, after severing off 1.46 percentage points at the beginning of the year.