After reporting a steep drop in U.S. business inventories in the previous month, the Commerce Department released a report on Thursday showing another substantial decrease in inventories in the month of May.
The Commerce Department said business inventories plunged by 2.3 percent in May after tumbling by 1.4 percent in April. The continued slump in inventories matched economist estimates.
Retail inventories led the way lower once again, showing a 6.2 percent nosedive in May after plummeting by 3.8 percent in April.
The report said wholesale inventories also slid by 1.2 percent in May after inching up by 0.2 percent, while manufacturing inventories crept up by 0.2 percent after edging down by 0.5 percent.
Meanwhile, business sales showed a significant rebound, surging up by 8.4 percent in May after cratering by 14.4 percent in April.
Retail sales soared by 17.1 percent in May after plunging by 12.7 percent in April, while wholesale and manufacturing sales also showed notable rebounds, jumping by 5.4 percent and 3.1 percent, respectively.
With inventories slumping and sales spiking, the total business inventories/sales ratio tumbled to 1.51 in May from 1.67 in April.