US Business Inventories Rebound in April

U.S. business inventories rebounded in April, but a slight downward revision to retail stocks excluding motor vehicles suggested inventory investment’s contribution to second-quarter economic growth could be modest.

The Commerce Department said on Thursday business inventories increased 0.3 percent after slipping 0.1 percent in March. Business inventories were previously reported to have been unchanged in March.



April’s rise in inventories, which are a key component of gross domestic product, was in line with economists’ expectations. Retail inventories increased 0.5 percent in April instead of gaining 0.6 percent as reported in an advance estimate published last month.

Retail inventories fell 0.7 percent in March.

Motor vehicle inventories rose 0.7 percent in April and not 0.6 percent as reported last month. Auto inventories declined 0.9 percent in March.

Retail inventories excluding autos, which go into the calculation of GDP, increased 0.4 percent in April rather than the previously reported 0.5 percent rise. They fell 0.6 percent in March.

Via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza