Washington, DC, Nov. 17--U.S. business inventories unexpectedly rose 0.3 percent in September as unsold stocks of autos accumulated at the fastest clip since February, a government report showed on Monday.
Analysts polled by Reuters had been expecting inventories to remain unchanged.
Motor vehicle and parts inventories rose 1.5 percent, the sharpest increase since a 2.1 percent rise in February, the Commerce Department said. Retail inventories excluding cars rose 0.8 percent, the steepest climb since May 2000.
It was the biggest rise in overall inventories since a matching 0.3 percent gain in March.
At the same time, total business sales climbed 0.6 percent in September as building materials, general merchandise, and home furnishings sales posted modest gains. Auto sales slid 2.2 percent.
The stock-to-sales ratio--a measure of how long it would take to deplete stocks at the current sales pace--remained at a record low 1.36 percent for the third month in a row.
Total retail inventories rose 1 percent, the sharpest rise since a 1.1 percent increase in February. Wholesale inventories also climbed, matching a 0.4 percent jump posted in March.
Manufacturing inventories slid 0.4 percent.
In a separate report, the Federal Reserve said overall business conditions for New York State manufacturers improved for a second month, with an index for the region rising to a record.
The New York Federal Reserve said its Empire State Manufacturing Survey index of business conditions leaped to an all-time high of 41.01 in November from an upwardly revised 34.11 in October.
The survey provides an early snapshot of factory activity during the month and at times has served as a leading indicator for other regional manufacturing measures. But it has a short history and the correlation has not always held up.
