Business Inventories Up More Than Expected

Washington, DC, June 13, 2008--Business inventories rose a higher than expected 0.5 percent in April, while sales were their strongest since November, according to the Commerce Department.

Inventories stood at a seasonally adjusted $1.47 trillion in April, the Commerce Department said. Wall Street analysts were expecting a 0.3 percent gain in April.

Retailer increased their stocks by 0.4 percent in April, after a 0.6 percent drop in March, in a sign they may be expecting stronger consumer spending.

Earlier on Thursday, the department reported retail sales in May rose 1 percent, much higher than expected. Analysts said rebates from the government stimulus package boosted sales at retailers.

The rise in inventories could cause economists to increase forecasts for second-quarter gross domestic product.

April business sales rose 1.4 percent, the best showing since a 1.9 percent rise in November.