US business inventories rise more than expected in July

WASHINGTON, Sept 16 (Reuters) - U.S. ‌business inventories ​increased ​more than expected in July as retailers and wholesalers restocked to meet robust demand, suggesting that ‌inventories could add to economic growth in the third ⁠quarter.

Inventories jumped 0.8% after edging up 0.1% in June, the Commerce Department's ‌Census Bureau said on ‌Wednesday. Economists polled by Reuters had forecast inventories, a key component of gross domestic product and one of the ​most volatile, gaining 0.3%.

Inventories advanced 3.8% year-on-year in July. Businesses are restocking after running down inventories for five ⁠straight quarters amid robust domestic demand.

Inventories subtracted 0.72 percentage point from gross domestic product ​growth in the second quarter. The economy grew at a 1.5% annualized rate last quarter. Growth ​estimates for the July-September quarter currently ‌exceed a 2% pace.

Retail inventories rebounded 0.8% in July, instead of 0.7% as estimated in ⁠an advance report last month. They fell 0.2% in June. Motor vehicle inventories advanced 0.8%, rather than 0.7% as previously reported. ⁠They increased 0.5% in June.

Retail inventories excluding autos, which go into the ​calculation of GDP, rose 0.8% instead of 0.7% as estimated last month. They fell 0.5% in June. Wholesale inventories increased 1.3% in July while ‌stocks at manufacturers rose 0.4%.

Business sales climbed 0.3% in July after decreasing 1.0% in the ‌prior month. At July's sales pace, it would take 1.30 ⁠months for businesses to clear ‌shelves, unchanged from ​June. The inventories/sales ratio was at 1.37 months in June 2025.

(Reporting by Lucia Mutikani; Editing by Chizu ‌Nomiyama )

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