The rise in wholesale inventories in the United States was revised down in July

The Commerce Department said Friday that wholesale inventories rose 0.6%, up from 0.8% as reported last month. Wholesale inventories rose 1.8% in June.

Economists polled by Reuters had forecast July stocks would not be revised. Wholesale inventories rose 25.1% in July year-on-year.

Inventories are a key component of gross domestic product.

Wholesale inventories of motor vehicles rose 1.7% after rising 3.0% in June. Wholesale inventories, excluding autos, rose 0.5% in July. This component enters into the calculation of GDP.

The US economy contracted unexpectedly in the second quarter, in contradiction to a robust labor market. The decline largely reflects a hangover from companies hoarding excess inventory at the end of last year, letting inventory sink before more was ordered, at a time when consumer spending slowed. .

Wholesale sales fell 1.4% in July after rising 1.6% in June. At the pace of July sales, it would take wholesalers 1.29 months to clear shelves, down from 1.26 in June.

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