WASHINGTON—U.S. wholesale inventories increased slightly more than initially thought in April, suggesting that inventory investment could provide a lift to economic growth this quarter.
The rise in stocks reported by the Commerce Department on Wednesday, however, came as sales growth moderated.
Inventories are being closely watched amid rising fears of a recession next year as the Federal Reserve raises interest rates to cool demand in its battle against high inflation. Major U.S. retailers, including Walmart and Target, said last month that they were carrying too much merchandise.
Wholesale inventories advanced 2.2 percent, instead of 2.1 percent as reported last month. Data for March was revised higher to show stocks at wholesalers rising 2.7 percent instead of the previously reported 2.3 percent. Economists polled by Reuters had expected April inventories would be unrevised….