WASHINGTON (AP) — U.S. wholesalers restocked their warehouses at a modest pace in June for a second straight month, a sign they may anticipate slower growth ahead.
The Commerce Department said Friday that wholesale inventories rose 0.3 percent, the same as the previous month. May's inventory gain was revised down from 0.5 percent.
The slowdown in restocking likely reflects weaker wholesale sales. Sales grew just 0.2 percent in June, down from 0.7 percent in May.
In June, companies boosted their stockpiles of furniture, lumber, computer equipment, and steel and other metals. But auto inventories fell, even as sales jumped. That suggests automakers will need to keep cranking out cars to meet strong demand.
The report shows that inventory levels are roughly in line with sales. That means wholesalers likely haven't gone too far in restocking their goods. As a result, they probably won't have to slow restocking in the coming months.
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