A report released by the Commerce Department on Wednesday showed a bigger than expected increase in wholesale inventories in the U.S. in the month of August.
The Commerce Department said wholesale inventories jumped by 1.0 percent in August after rising by 0.6 percent in July. Economists had expected wholesale inventories to climb by 0.8 percent.
The bigger than expected increase in wholesale inventories came as inventories of non-durable goods surged up by 1.2 percent amid substantial increases in inventories of farm products, chemicals, and drugs.
Inventories of durable goods also climbed by 0.9 percent, partly reflecting a 3.5 percent spike in inventories of automotive products.
The Commerce Department also said wholesale sales increased by 0.8 percent in August after edging up by 0.2 percent in July.
Sales of durable goods jumped by 1.3 percent amid sharp increases in sales of computer equipment, professional equipment, and metals.
The report said sales of non-durable goods also rose by 0.5 percent, as notable increases in sales of apparel and miscellaneous non-durable goods were partly offset by a steep drop in sales of farm products.
With inventories and sales both climbing, the inventories/sales ratio for merchant wholesalers was unchanged from the previous month at 1.26.