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WASHINGTON (Reuters) - U.S. wholesale inventories increased solidly in March, though the pace slowed from the prior month amid rising sales, government data showed on Monday.
The Commerce Department said wholesale inventories rose 2.3% in March as reported last month. Stocks at wholesalers climbed 2.8% in February. Economists polled by Reuters had expected inventories would be unrevised.
Wholesale inventories advanced 22.0% in March on a year-on-year basis. Inventories are a key part of gross domestic product. Wholesale motor vehicle inventories accelerated 2.4% after rebounding 1.9% in February.
Wholesale inventories, excluding autos, rose 2.3% in March. This component goes into the calculation of GDP.
Inventory investment slowed in the first quarter from the October-December period’s robust pace. That, together with a record trade deficit, weighed on gross domestic product, resulting in the economy contracting at a 1.4% annualized rate in the first quarter.
Sales at wholesalers increased 1.7% in March after gaining 1.5% in February. At March’s sales pace it would take wholesalers 1.22 months to clear shelves, unchanged from February.
Reporting by Lucia Mutikani; Editing by Paul Simao
