U.S. business inventories grew at a slower pace in May to cope with weaker growth of sales, the Department of Commerce said on Thursday.
Inventories rose 0.5 percent in May, following an increase of 1. 0 percent in April. The combined sales by manufacturers, wholesalers and retailers increased 0.7 percent in May, after rising 1.3 percent in April.
The total business inventories-to-sales ratio, a figure measuring the time span of the inventories being sold, stood at 1. 18 by the end of May, unchanged from the revised number in April.
It is normally interpreted as a positive sign of the economy when businesses boost their stockpiles. Higher business inventories indicate stronger economic confidence and would contribute to the growth of the gross domestic product.