Inventories Surge, Sales Slump: The Commerce Department...

Inventories Surge, Sales Slump: The Commerce Department said inventories jumped 0.7% in July, while sales slumped 0.5%, causing some apprehension over the amount of goods held in stock. Although the level of inventories is not recessionary, Robert Brusca, chief financial economist at Nikko Securities Co. International in New York, said surging stockpiles are a danger sign. The department said inventories in July totaled a seasonally adjusted $801.9 billion, up from $796.5 billion in June. It was the biggest increase since a 0.8% gain in July, 1989. Sales, meanwhile, dropped to a seasonally adjusted $539.5 billion from $542.4 billion in June.