US business inventories rose slightly in May
WASHINGTON — Inventories held by U.S. businesses rose modestly in May, as retailers stocked up to meet customer demand.
The Commerce Department says U.S. business inventories rose 0.2 per cent in May after edging up 0.1 per cent in April. Sales rose 0.2 per cent.
Manufacturers, pinched by weak global demand and a strong dollar that makes their products costlier in world markets, left inventories unchanged. Over the past year, factory inventories were down 3.0 per cent.
Meanwhile, retailers raised inventories by 0.5 per cent in May and 6 per cent over the past year, a sign they are confident that American shoppers will continue to spend.
A slowdown in restocking empty shelves has dragged down economic growth three straight quarters and helped limit growth to a lacklustre 1.1 per cent annual pace from January through March.
Paul Wiseman, The Associated Press
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