US wholesale inventories rose in August amid a decline in sales as automobile inventories remained very low due to the global chip shortage hurting motor vehicle production.
Source: US Department of Commerce.
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Wholesale inventories rose by 1.2%, as estimated last month. Stocks at Wholesalers improved 0.6% in July. Wholesale inventories were up 12.3% in August from a year earlier.
Motor vehicle inventories declined 0.1% after dropping 0.3% in July. Inventories are an important component of gross domestic product. Wholesale inventories jumped 1.3% in August.
Business inventories were expended in the first half of the year, but shortages are making it difficult to rebuild stocks due to persistent supply bottlenecks because of the COVID-19 pandemic.
The rebuilding of US inventories is forecasted to underpin manufacturing and economic growth in the second half of the year.
Sales at wholesalers dropped 1.1% in August after rising 2.1% in July. At August’s sales pace, it would take the US wholesalers 1.2 months to spend inventories, up from 1.20 months in July.