Discover the latest data on U.S. business inventories for June and how it could impact your investments.
According to the Commerce Department's Census Bureau, U.S. business inventories rose 0.3% in June, following a 0.5% increase in May. This growth was in line with economists' expectations and inventories increased by 2.1% year-on-year.
Private inventory investment contributed significantly to the economy's 2.8% annualized growth pace in the second quarter, after being a drag for two consecutive quarters. Retail inventories saw a notable increase of 0.9% in June, surpassing the 0.7% estimate from the previous month's report.
Motor vehicle inventories also saw a significant climb of 2.2% in June, higher than the previously reported 1.8%. Meanwhile, wholesale inventories increased by 0.2% and stocks at manufacturers remained unchanged.
Business sales, however, fell by 0.1% in June, following no change in May. It would take 1.38 months for businesses to clear shelves at June's sales pace, unchanged from May.
Analysis:
The increase in U.S. business inventories for June reflects a positive trend in the economy, with private inventory investment contributing to overall growth. The rise in retail and motor vehicle inventories suggests consumer demand and economic activity. However, the slight decline in business sales indicates potential challenges in the market. Investors should monitor these trends closely to make informed decisions about their portfolios.