WASHINGTON, Oct 15 (Reuters) – U.S. business inventories
increased 0.6 percent in August, boosted by an increase in
automobile stocks, the Commerce Department said on Monday.
Inventories rose to $1.6 trillion, the government said.
Economists polled by Reuters had forecast inventories rising 0.5
percent in August, so the report is unlikely to substantially
change forecasts for economic growth during the third quarter.
Inventories in August were lifted by a 1.5 percent jump in
stocks at auto dealers as sales accelerated from weak growth the
previous month. Auto inventories had increased 2.7 percent in
July.
Inventories are a key component of gross domestic product
changes. Inventories excluding autos — which go into the
calculation of gross domestic product — rose 0.2 percent after
climbing 0.4 percent in July.
Business sales grew 0.5 percent to $1.25 trillion in August
after rising 0.9 percent the prior month.
At August’s sales pace, it would take 1.28 months for
businesses to clear shelves, unchanged from July.
(Reporting by Jason Lange; Editing by Andrea Ricci)
