US Business Inventories Remain Flat as June Sales Slump

The United States Department of Commerce reported that business inventories remained unexpectedly flat in June, defying economist predictions of a 0.2 percent increase. This stagnation occurred as a 0.2 percent dip in retail inventories offset modest gains in manufacturing and wholesale inventories, which rose by 0.1 percent and 0.2 percent, respectively.

Total business sales slumped by 1.1 percent in June, reversing a 2.1 percent surge recorded in May. This decline was primarily driven by a 3.0 percent plunge in wholesale sales. While manufacturing sales slipped by 0.2 percent, retail sales saw a slight growth of 0.2 percent.

As a result of the falling sales and stagnant inventory levels, the total business inventories-to-sales ratio rose to 1.30 in June, up from 1.28 in May.