Business inventories in the U.S. rose by less than expected in the month of February, according to a report released by the Commerce Department on Monday, although the report also showed a notable rebound in business sales during the month.
The report showed that business inventories rose by 0.4 percent in February, matching the increase seen in January. Economists had expected inventories to increase by about 0.6 percent.
The increase in business inventories was partly due to higher inventories at manufacturers, which rose by 0.7 percent in February after edging up by 0.2 percent in January.
Inventories at merchant wholesalers also increased by 0.5 percent in February after climbing by 0.8 percent in the previous month.
On the other hand, the report said inventories at retailers came in unchanged in February after rising by 0.3 percent in January.
Meanwhile, the Commerce Department also said business sales increased by 0.8 percent in February after tumbling by 1.1 percent in the previous month.
Sales by manufacturers rose by 0.9 percent in February after falling by 0.7 percent in January, while sales by both retailers and merchant wholesalers increased by 0.7 percent.
With inventories and sales both rising, the total business inventories/sales ratio was unchanged from the previous month at 1.31. The ratio came in at 1.28 in the same month a year ago.
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