U.S. business inventory accumulation slows in July
16/09/2021 15:19
WASHINGTON, Sept 16 (Reuters) - U.S. business inventory
accumulation slowed in July as motor vehicle retailers struggled
to restock amid an ongoing global semiconductor shortage, which
is forcing automobile manufacturers to scale back production.
Business inventories rose 0.5% after increasing 0.9% in
June, the Commerce Department said on Thursday. Inventories are
a key component of gross domestic product. July's increase was
in line with economists' expectations.
Inventories rose 7.2% on a year-on-year basis in July.
Retail inventories gained 0.4% in July as estimated in an
advance report published last month. That followed a 0.5% rise
in June. Motor vehicle inventories climbed 0.2% instead of 0.3%
as estimated last month.
Retail inventories excluding autos, which go into the
calculation of GDP, rose 0.5% as estimated last month.
Business inventories were depleted in the first half of the
year, but shortages amid persistent supply bottlenecks because
of the COVID-19 pandemic and recent ports congestion in China
are frustrating efforts to replenish stocks.
Still, inventory rebuilding is expected to underpin economic
growth in the second half of the year.
Wholesale inventories increased 0.6% in July. Stocks at
manufacturers advanced 0.5%.
Business sales gained 0.5% in July after rising 1.6% in
June. At July's sales pace, it would take 1.25 months for
businesses to clear shelves, unchanged from June.
(Reporting by Lucia Mutikani
Editing by Chizu Nomiyama)
((Lucia.Mutikani@thomsonreuters.com; 1 202 898 8315; Reuters
Messaging: lucia.mutikani.thomsonreuters.com@reuters.net))