U.S. wholesale inventories rose strongly in March, but the pace slowed from a month earlier on higher sales, government data showed.
The Commerce Department said wholesale inventories rose 2.3% in March, as reported last month. Stocks had risen 2.8% in February. Economists polled by Reuters had expected inventories to remain unchanged.
Wholesale inventories advanced 22% annually in March. Those of motor vehicles accelerated 2.4%, after rebounding 1.9% in February.
Wholesale inventories, excluding automobiles, rose 2.3 percent.
Inventory investment slowed in the first quarter of the year from the strong pace of October-December.
This, along with a record trade deficit, weighed on GDP, causing the economy to contract at an annualized rate of 1.4% in the first quarter.
Wholesale sales rose 1.7% in March, following a 1.5% rise in February. At the rate of March sales, it would take 1.22 months for wholesalers to empty the shelves.
Inventory measures measure the change in value of unsold goods held by wholesalers. A high number may suggest a lack of demand. Therefore, a higher than expected reading should be taken as negative.