Stocks of unsold goods piled up steadily in July, the government said Monday, a sign that businesses were having trouble getting inventories into line with soft sales.
Inventories held by all businesses grew 0.3 percent to a seasonally adjusted $962.83 billion in July, the Commerce Department said, the 16th straight monthly increase.
Analysts said the inventory “overhang” was a drag on the economy as it forced manufacturers to keep a lid on production. But they noted that retailers made progress clearing store shelves, which could allow for production to pick up.
The report fits a pattern of mixed economic news that will confront Federal Reserve policy-makers when they meet on Sept. 26 to weigh another cut in interest rates.
Manufacturers’ inventories rose 0.6 percent in July to a seasonally adjusted $412.45 billion, while wholesalers’ stocks of unsold goods grew 0.9 percent to $252.12 billion.
Retail inventories dropped for a second month in a row, falling 0.7 percent to a seasonally adjusted $298.25 billion.
