US business inventories hit 10-month high in April

WASHINGTON, June 11 (Reuters) - U.S. business inventories rose to a 10-month high in April as businesses continued to restock warehouses amid rising sales, a government report showed on Friday.

The Commerce Department said inventories rose 0.4 percent to $1.35 trillion, the highest level since June last year, following a 0.7 percent increase in March. Markets had expected April inventories to rise 0.5 percent from a previously reported 0.4 percent increase.

Inventories are a key component of gross domestic product changes over the business cycle and the rebuilding of merchandise stock from record low levels is one of the key drivers of the economy's recovery from the worst recession since the 1930s.

Business sales increased 0.6 percent to $1.10 trillion in April, the highest level since October 2008, following a revised 2.5 percent increase in March. Sales in March were previously reported to have increased 2.3 percent.

The rise in April sales left the inventory-to-sales-ratio, which measures how long it would take to clear shelves at the current sales pace, at 1.23 months' worth, unchanged from March. (Reporting by Lucia Mutikani..Editing by W Simon )