In the latest sign that the U.S. economy picked up steam as winter turned to spring, inventories at U.S. businesses increased in April.
Businesses inventories rose by a seasonally adjusted 0.2 percent in April after declining 0.2 percent in March, the Commerce Department said Thursday.
The March dip was revised down from an initial estimate of a 0.1 percent decrease.
The April increase matched Wall Street’s expectations. Retail sales were strong in April, rising 0.4 percent excluding gas station sales. In a separate report on Thursday, the Commerce Department said retail sales in May were even stronger, rising 0.6 percent excluding gas station sales.
Inventories rose by 0.1 percent at retailers and 0.5 percent at manufacturers. Wholesale inventories dipped 0.1 percent.
Compared with a year ago, business inventories were up 5.2 percent.
The increase in inventories likely reflects increasing business confidence in consumer spending and a willingness to finance larger stocks of goods despite higher interest rates.