U.S. wholesalers built up their inventories at the fastest rate in 20 months in July, the government said on Monday, in an encouraging sign for the economy,
suggesting businesses have been boosting stocks to keep up with increased demand.
Pushed higher by cars and machinery, wholesale inventories increased 0.6% in July to $284.15 billion, the Commerce Department said, after a rise of 0.4% in June. That was the fastest rise since a matching 0.6% in November 2000 and outpaced analyst expectations for a 0.2% increase.
Sales of goods also rose at a healthy rate, climbing 0.6%, according to Reuters.
The stocks-to-sales ratio, which measures how long it would take to deplete stocks at the current sales pace, remained at 1.23 months, the record low where it has been since April.
Increased stocks of cars and machinery fueled the growth in inventories. Car inventories rose 1.3% and machinery stocks climbed 0.9%.
Those inventory increases were partially offset by falls in stocks of computer and professional equipment.
Cars and machinery also swelled overall sales. Auto sales were up 0.4% and machinery sales posted a gain of 0.2%. Auto sales have been running at high levels in recent weeks as consumers flock to showrooms to take advantage of financing incentives.
Total inventories of durable goods, items designed to last three years or more, rose 0.5 percent but sales of durables were down 0.1%.