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.
In response to a complaint lodged at the end of last year by the US unit of a German solar manufacturer, the US launched an investigation into the imports of solar power from China, sparking a strong response from the Chinese commerce ministry.
The US began investigations on Thursday into the allegations that imports of some solar products from Taiwan and China are being “dumped” onto the US market. China fears that the US investigation could negatively affect their growing solar market.
The US Department of Commerce said it will investigate whether China is selling their solar products in the US at prices below their fair value, or whether their producers are getting inappropriate amounts of foreign government subsides.
The Chinese commerce ministry wrote on their website that
“The Chinese side expresses serious concern. China urges the United States again to carefully handle the current … investigations, be prudent in taking measures and terminate the investigation proceedings.”
The ministry added that China will evaluate the impact the investigation has on its solar industry and will “resolutely defend” it via a variety of mechanisms.
The present investigation was a response to complaints by SolarWorld AG which said they wanted to close a loophole in a previous trade case which allowed Chinese solar panel manufacturers to sidestep duties by using solar cells produced in other countries, such as Taiwan.