WASHINGTON—U.S. business inventories increased strongly in June amid signs of a large buildup of stocks in the retail sector despite a pickup in sales.
Business inventories rose 1.4 percent after advancing 1.6 percent in May, the Commerce Department said on Wednesday. Inventories are a key component of gross domestic product. June’s increase was in line with economists’ expectations.
Inventories increased 18.5 percent on a year-on-year basis in June.
Retail inventories increased 2.0 percent in June, as estimated in an advance report published last month. That followed a 1.6 percent gain in May. Motor vehicle inventories accelerated 3.3 percent instead of the 3.1 percent estimated last month. They advanced 2.4 percent in May….