U.S. Wholesale Stockpiles In June Show Largest Gain In Year
WASHINGTON (AP) — U.S. wholesalers increased their stockpiles in June by the largest amount in more than a year, while sales crept up slightly.
The Commerce Department says wholesale stockpiles rose 0.9 percent, the largest monthly gain since April 2014. Sales increased 0.1 percent in June yet have dropped 3.8 percent over the past year largely because of cheaper oil prices.
The rising inventory levels in June possibly suggest that businesses are more confident about an increase in consumer spending and economic growth. But if sales fail to grow at the same pace as inventories, then the excess supplies could force companies to cut orders and dampen overall growth.
The June rise in stockpiles left inventories at the wholesale level at a seasonally adjusted $586 billion, 5.4 percent above a year ago.
– by AP Reporter Josh Boak