Partly reflecting notable growth in retail inventories, the Commerce Department released a report on Friday showing a slightly bigger than expected increase in business inventories in the month of May.
The report said business inventories rose by 0.2 percent in May after inching up by 0.1 percent in April. Economists had expected another 0.1 percent uptick.
The bigger than expected increase came as retail inventories climbed by 0.5 percent in May after dipping by 0.1 percent in the previous month.
Wholesale inventories also edged up by 0.1 percent in May after climbing by 0.7 percent in April, while manufacturing inventories slipped by 0.1 percent for the second straight month.
The Commerce Department also said business sales rose by 0.2 percent in May following a 0.8 percent increase in April.
Wholesale sales climbed by 0.5 percent and retail sales edged up by 0.2 percent, while manufacturing sales came in unchanged.
Reflecting the matching growth in inventories and sales, the total business inventories/sales ratio in May was unchanged from the previous month at 1.40. The ratio came in at 1.37 a year ago.
Compared to the same month a year ago, business inventories were up by 1.0 percent but business sales were down by 1.4 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
December 19, 2025 15:10 ET U.S. inflation data and interest rate decisions by major central banks were the highlights of this busy week for economics news flow. Employment data and survey results on the housing markets also gained attention in the U.S. In Europe, the European Central Bank and Bank of England announced their policy decisions and macroeconomic projections.