Business inventories in US surge by 0.4 percent in July, beating market expectations


(MENAFN) In July, US business inventories rose by 0.4 percent, reaching a total of USD2,574.9 billion, according to figures released by the Commerce Department on Tuesday. This increase exceeded market expectations, which had anticipated a more modest gain of 0.3 percent. The July figure reflects a notable expansion in the value of unsold goods held by manufacturers, wholesalers, and retailers, contributing to a larger overall inventory pool.

The previous month's data was slightly adjusted downward, with June's business inventories revised from USD2,567.5 billion to USD2,565.9 billion. Despite this revision, June still showed a modest monthly increase of 0.3 percent. The adjustments indicate a slightly lower inventory level than initially reported but still reflect ongoing inventory growth.

On a year-over-year basis, business inventories in July were up by 2.5 percent compared to the same month in 2023. This annual increase highlights a steady rise in the value of unsold goods, indicating a continued accumulation of stock across various sectors within the economy. The annual growth rate points to a broader trend of rising inventory levels over the past year.

The inventory data provides insights into the economic health and operational dynamics of US businesses. As businesses manage their inventory levels in response to market demand and economic conditions, the increase in July's figures suggests that companies are holding more stock, potentially in anticipation of future sales or adjustments to supply chain disruptions.

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