 "US business inventories edge up 3.5% YoY in May; sales gained 0.2%")
US business inventories rose moderately in May as businesses continued to manage stocks in anticipation of weaker demand because of higher borrowing costs.
Business inventories rose 0.2% after ticking up 0.1% in April, the Commerce Department said on Tuesday. The increase in inventories, a key component of gross domestic product, was in line with economists' expectations.
Inventories increased 3.5% on a year-on-year basis in May.
Private inventory investment rose at its slowest pace in 1-1/2 years in the first quarter, helping to restrict GDP growth to a 2.0% annualized pace in that three-month period. Growth estimates for the second quarter are around a 2.3% pace.
Retail inventories rose 0.7% in May instead of 0.8% as estimated in an advance report published last month. They climbed 0.3% in April.
Motor vehicle inventories accelerated 2.8% instead of 2.9% as estimated last month. They increased 1.6% in April.
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Retail inventories excluding autos, which go into the calculation of GDP, slipped 0.1% instead of being unchanged as estimated last month.
Wholesale inventories were unchanged, while stocks at manufacturers fell 0.2%.
Business sales gained 0.2% after edging down 0.1% in April.
At May's sales pace, it would take 1.40 months for businesses to clear shelves, unchanged from April.