WASHINGTON (AP) – U.S. businesses added to their stockpiles in May, while sales rose for a third straight month.
Business stockpiles in May edged up 0.3 percent from the previous month on a seasonally adjusted basis, the Commerce Department reported Tuesday. The result may indicate that businesses are optimistic about future sales.
Sales in May were up 0.4 percent following gains in March and April. Before March, sales had posted seven straight monthly declines.
Economists are forecasting sales to keep rebounding in the second half of this year and that consumer spending will help lift overall economic growth. However, a separate report Tuesday showed that retail sales in June fell 0.3 percent as consumers cut back their spending at stores and restaurants.
Despite the disappointing retail sales result, which followed a robust 1 percent gain in May, analysts said they are still hopeful that consumers will ramp up their spending in coming months based on rising incomes from strong job gains over the past year.