Increase in Inventories Is Biggest in 18 Months

Inventories at U.S. factories, wholesalers and stores rose more in July than at any time in 1 1/2 years as auto dealers responded to a surge in sales.

The 0.4% increase in inventories was the strongest since November 2000 and followed a 0.3% gain in June, the Commerce Department said. Sales at U.S. businesses jumped 1.2%, four times the previous month’s gain and the largest rise since April.

The inventory-to-sales ratio for all businesses, which measures the time goods are unsold, fell to 1.35 months in July from 1.36 months in June. The ratio matched April’s, which was the lowest on record.