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U.S. wholesale inventories rise slightly in August

Published 10/09/2015, 10:06 AM
Updated 10/09/2015, 10:09 AM
© Reuters. Costco warehouse shopping aisle shown in California

WASHINGTON, (Reuters) - U.S. wholesale inventories rose in August, boosted by larger stocks of computers and professional equipment used by businesses.

The Commerce Department said on Friday that wholesale inventories increased 0.1 percent, outpacing the median forecast of a flat reading in a Reuters poll.

Inventories are a key component of gross domestic product changes. The component of wholesale inventories that goes into the calculation of GDP - wholesale stocks excluding autos -rose 0.1 percent.

Inventories for durable goods climbed 0.3 percent, with computers up 1.9 percent. At August's sales pace it would take 1.31 months to clear shelves, up slightly from 1.30 months in July.

An inventory-to-sales ratio that high usually means an unwanted inventory build-up, which would require businesses to liquidate stocks. That in turn could weigh on manufacturing and economic growth.

© Reuters. Costco warehouse shopping aisle shown in California

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