Wholesale Inventories Increase 0.5%
Report From Commerce Department
Solidifying views that the U.S. economy picked up momentum in the second quarter, May wholesale inventories rose 0.5%, according to a report from the Commerce Department. The data, analysts say, is further evidence that Q2 GDP expanded by a consensus of about 3%. In the first quarter, GDP contracted by 2.9%, as inventories and purchases were slowed by an especially cold and snowy winter across much of the country.
Specifically in May, data showed key wholesale gains were made through inventories of metals, machinery, autos, and lumber. Wholesale stock excluding autos – which factors importantly into GDP – jumped 0.3%. Sales at wholesalers, meanwhile, increased 0.7%. In April, inventories increased by a revised 1%, the Commerce Department said, while sales jumped 1.3%. At the recent pace of sales, it would take 1.18 months to clear shelves.
May inventories of durable goods increased 1% from April, to $317.9 billion. Sales in May of durable goods improved by 0.2% over April to $206.5 billion – marking a year-over-year increase of 5.9%. Sales of nondurable goods, which reached $246.7 billion, rose 1.1% from $244 billion. Sales of apparel, piece goods, and notions were up 2% over April and year-over-year by 10.7%, data showed.