Wholesale inventories in the U.S. rose by slightly more than anticipated in the month of May, according to a report released by the Commerce Department on Tuesday.
The Commerce Department said wholesale inventories climbed by 0.4 percent in May following a revised 0.4 percent drop in April.
Economists had expected inventories to rise by 0.3 percent compared to the 0.5 percent decrease originally reported for the previous month.
The bigger than expected increase in wholesale inventories came as inventories of durable goods rose by 0.6 percent in May after coming in unchanged in April.
The report said inventories of computer equipment, metals, and hardware showed significant increases during the month.
Meanwhile, the Commerce Department said inventories of non-durable goods were flat in May after tumbling by 1.1 percent in April.
Sharp increases in inventories of petroleum, alcohol, and miscellaneous non-durable goods were offset by steep drops in inventories of drugs, chemical, and farm products.
The report also said wholesale sales slid by 0.5 percent in May following a 0.3 percent decrease in the previous month.
Sales of non-durable goods slumped by 0.9 percent during the month, while sales of durable goods edged down by 0.1 percent.
With inventories rising and sales falling, the inventories/sales ratio for merchant wholesalers inched up to 1.29 in May from 1.28 in April.
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