US Business Inventories Rebounded 0.3 Percent In May

U.S. businesses increased their stockpiles in May, while sales fell by the largest amount in 10 months.

The Commerce Department says business inventories rose 0.3 percent, rebounding from a 0.2 percent decline in April. Total business sales fell 0.2 percent, the largest decline since a 0.3 percent drop last July. Sales have been weak for the past three months.

When businesses increase stockpiles, it is generally seen as a sign of their confidence that sales will increase in the coming months. A decrease in inventories can be a sign of pessimism about future sales.

Economic growth slowed in the January-March quarter, in part because inventories subtracted from overall economic activity, but economists are looking for a rebound in the second quarter.