June 15, 2005 8:50 AM, EDT

Business Inventories Rise 0.3%, Commerce Reports

Click here to write a Letter to the Editor.

usiness inventories rose 0.3% in April, the Commerce Department said Wednesday.

The rise was the smallest this year and was below analysts’ estimates of 0.4%, Bloomberg reported. The increase followed a revised 0.5% gain in March that had been reported originally at 0.4%.

It brought the value of goods held by manufacturers, retailers and wholesalers to $1.3 trillion, Commerce said.

When inventories and sales are growing, it usually means trucking is seeing additional demand to deliver goods and restock shelves.

Sales increased 1.2%, the highest gain this year, following a 0.6% increase in March, Commerce said.

he sales increase lowered the inventory-to-sales ratio, which measures how long supplies will last at current demand levels, to 1.3 months from 1.31, matching a record low.

Retail inventories held at a 0.2% gain. Auto and parts dealers’ inventories rose 0.2% for a second straight month, Commerce said.