US Business Inventories Rise 0.4% in August, Slowing From July

U.S. business inventories rose 0.4% in August, matching expectations but slowing from a revised 0.9% increase in July. Stocks increased across retailers, wholesalers and manufacturers, while business sales jumped 1.1%, indicating sales outpaced inventory growth. The rebuilding of inventories follows several quarters of drawdowns amid strong domestic demand, but reliance on imports could weigh on GDP; restocking may partly offset that drag. Because inventory changes are a volatile component of GDP, the figures—particularly retail inventories excluding autos—help economists refine estimates of economic growth.