A report released by the Commerce Department on Wednesday showed wholesale inventories in the U.S. increased by slightly more than expected in the month of May.
The Commerce Department said wholesale inventories climbed by 0.6 percent in May after inching up by 0.1 percent in April. Economists had expected inventories to rise by 0.5 percent.
Inventories of durable goods rose by 0.5 percent in May after edging up by 0.2 percent, with the increase partly reflecting a jump in machinery inventories.
The report said inventories of non-durable goods also climbed by 0.7 percent in May after coming in unchanged in the previous month.
Inventories of petroleum products, paper, drugs, and chemicals all showed significant increases during the month.
The Commerce Department also said wholesale sales surged up by 2.5 percent in May following a 1.4 percent jump in April.
Sales of non-durable goods spiked by 3.1 percent in May after jumping by 1.6 percent in April, while sales of durable goods shot up by 1.9 percent after climbing by 1.1 percent in the previous month.
With sales rising by much more than inventories, the inventories/sales ratio for merchant wholesalers dropped to 1.24 in May from 1.27 in April.