Wholesaler Inventories Rise Quickly in July

U.S. wholesalers built up their inventories in July at the fastest rate in 20 months, the government said, in an encouraging sign for the economy as it suggests businesses have been boosting stocks to keep up with increased demand.

Pushed higher by cars and machinery, wholesale inventories increased 0.6% in July to $284.15 billion, the Commerce Department said, after a rise of 0.4% in June. That was the fastest rise since a 0.6% increase in November 2000 and outpaced analyst expectations for a 0.2% increase.

The stocks-to-sales ratio, which measures how long it would take to deplete stocks at the current sales pace, remained at 1.23 months, the record low it has stayed at since April.

The growth in inventories was fueled by increased stocks of cars and machinery.