US Business Inventories Rise 0.4 Percent in August

The United States Department of Commerce reported that business inventories increased by 0.4 percent in August, a figure that aligned with economist expectations. This growth followed a July increase that was later revised upward to 0.9 percent.

Inventory growth in August was led by the wholesale and manufacturing sectors, both of which saw increases of 0.5 percent, while retail inventories grew by 0.2 percent. Business sales grew at a faster rate than inventories, rising by 1.1 percent overall during the month.

Wholesale sales surged by 1.8 percent and retail sales increased by 1.3 percent, though manufacturing sales remained unchanged. Because sales grew more rapidly than stock, the total business inventories-to-sales ratio dropped from 1.34 in July to 1.33 in August.