May Inventories Increased Faster Than Sales

Inventories at U.S. wholesalers rose twice as fast as sales in May, another sign the economy cooled in the second quarter. Wholesale inventories increased 0.8% in May, after rising 0.9% in April, as stockpiles of imported automobiles, machinery and electrical equipment increased, the Commerce Department reported. Sales at wholesalers grew 0.4% in May, up from a 0.3% rise a month earlier. Sales of durable goods, made to last three years or more, rose 0.7% in May, the same as in April. May’s gain was led by professional equipment, electrical hardware and machinery. Sales of automobiles produced outside the U.S. fell 1% after rising 0.9% in April. As a result of slower car and light truck sales, auto inventories increased 0.4% in June. Stockpiles of appliances and other electrical equipment rose 1.2%, while inventories of machinery increased 0.8%. Sales of nondurable goods rose 0.1%, after falling 0.2% in April. Inventories of durable goods rose 0.7% after a 1.1% gain in April. Stockpiles of nondurable goods rose 1.2%, after a 0.7% rise in April.