Wholesalers build inventories in April as sales rise
Companies may have stepped up production after winter malaise
Wholesale inventories jumped 0.6% in April to mark the biggest increase since June 2015, the Commerce Department said Thursday. The buildup in inventories suggests companies increased production early in the second quarter, a move that would boost gross domestic product.
Perhaps more important, wholesale sales were even stronger. They rose 1% in April — the biggest advance in a year.
A falling ratio implies that companies have gotten a better handle on inventories or the sales are picking up, both of which are positives for the economy.