June Wholesale Sales Rise; Inventories Up

Sales at U.S. wholesalers rose twice as fast as inventories in June, led by increased purchases of automobiles, computers and groceries, government figures showed.

Sales rose 0.6% during the month after no change in May, the Commerce Department said. Inventories increased 0.3%, the first rise since May 2001, after no change in the previous month. A measure of the length of time stockpiles will last at the current sales pace held at a record low.

The economy expanded in the second quarter at a fifth of the first-quarter pace, giving companies intent on controlling costs little reason to add much to inventories. Retailers probably will report today that their sales last month were the second-weakest this year.

A separate report from the Labor Department showed import prices excluding petroleum were unchanged in July and 1.5% lower than they were in the same month last year. Including petroleum, import prices rose 0.4% and were 1.7% lower than July 2001.