Inventory growth more than doubles
Businesses added to their stockpiles by the largest amount in three months in April, a better-than-expected showing that provides support for economic growth.
The Labor Department reported Thursday that business inventories grew by 0.5% in April, more than double the 0.2% rise in March and the best showing since inventories rose by 1% in January.
The increase in stockpiles held on shelves and back lots was significantly higher than the 0.3% gain that analysts had been expecting and will provide a boost to economic activity in the April-June quarter cash advances.
The overall economy, as measured by the gross domestic product, grew at an annual rate of 0.9% in the first three months of the year.