WASHINGTON, June 10 U.S. wholesale inventories
rose more than expected in April, which bolsters views of a
sharp acceleration in economic growth in the second quarter.
The Commerce Department said on Tuesday wholesale
inventories increased 1.1 percent after advancing by the same
margin in March. The rise outstripped economists' expectations
for only a 0.5 percent gain.
Inventories are a key component of gross domestic product
changes. The component that goes into the calculation of GDP -
wholesale stocks excluding autos - increased 1.1 percent.
A sharp slowdown in the pace of restocking by businesses
helped to sink economic growth in the first quarter, but a swing
in inventories is expected in the April-June period.
Data last week showed a rise in stocks at manufacturers in
April and further gains are likely after a surge in automobile
sales in May depleted stocks of some vehicle models.
The economy contracted at a 1.0 percent annual pace in the
January-March period as inventories subtracted 1.6 percentage
points from GDP. Growth this quarter is forecast topping a 3.0
percent pace, but the sturdy gains in wholesale inventories in
April could prompt some economists to raise their GDP estimates.
Sales at wholesalers increased 1.3 percent in April after
rising 1.6 percent the prior month. At April's sales pace it
would take 1.18 months to clear shelves, unchanged from March.
(Reporting by Lucia Mutikani; Editing by Andrea Ricci)