Xinhua, Washington :
US business inventories and sales continued to increase in June, the latest sign that the economic growth in the second quarter might be better than estimated.
In June, inventories rose 0.8 percent from May, and the combined sales by manufacturers, wholesalers and retailers increased 0.2 percent,the Commerce Department said Thursday.
The total business inventories-to-sales ratio, a figure measuring the time span of the inventories being sold, stood at 1. 37 by the end of June, slightly higher than May’s reading of 1.36.
It is normally interpreted as a positive sign of the economy when businesses boost their stockpiles. Higher business inventories indicate stronger economic confidence and would contribute to the growth of the gross domestic product.
In a separate report, the commerce department revised up June’s retail sales reading to zero growth from previous estimate of 0.3 percent drop. Analysts widely believed that, together with the retail sales report, the June’s business inventories report are likely to lift revision estimates for the economic growth in the second quarter.
US business inventories and sales continued to increase in June, the latest sign that the economic growth in the second quarter might be better than estimated.
In June, inventories rose 0.8 percent from May, and the combined sales by manufacturers, wholesalers and retailers increased 0.2 percent,the Commerce Department said Thursday.
The total business inventories-to-sales ratio, a figure measuring the time span of the inventories being sold, stood at 1. 37 by the end of June, slightly higher than May’s reading of 1.36.
It is normally interpreted as a positive sign of the economy when businesses boost their stockpiles. Higher business inventories indicate stronger economic confidence and would contribute to the growth of the gross domestic product.
In a separate report, the commerce department revised up June’s retail sales reading to zero growth from previous estimate of 0.3 percent drop. Analysts widely believed that, together with the retail sales report, the June’s business inventories report are likely to lift revision estimates for the economic growth in the second quarter.
