Partly reflecting a notable increase in wholesale inventories, the Commerce Department released a report on Monday showing business inventories in the U.S. rose in line with economist estimates in the month of May.
The Commerce Department said business inventories climbed by 0.4 percent in May after rising by 0.3 percent in April. The increase in inventories matched expectations.
Wholesale inventories led the way higher, advancing by 0.6 percent in May after inching up by 0.1 percent in the previous month.
The report said manufacturing inventories also edged up by 0.2 percent in May following a 0.4 percent increase in April, while retail inventories rose by 0.4 percent for the second consecutive month.
The Commerce Department also said business sales surged up by 1.4 percent in May after climbing by 0.6 percent in April.
The jump was partly due to a substantial increase in wholesale sales, which soared by 2.5 percent in May following a 1.4 percent spike in April.
Retail sales also shot up by 1.1 percent in May after rising by 0.4 percent in April, while manufacturing sales climbed by 0.6 percent after ticking up by 0.1 percent in the previous month.
With sales rising by more than inventories, the total business inventories/sales ratio dipped to 1.34 in May from 1.35 in April.