WASHINGTON (Reuters) - U.S. business inventories rebounded in May as sales recorded their biggest drop in 10 months, government data showed on Friday.
The Commerce Department said business inventories increased 0.3 percent after an unrevised 0.2 percent decrease in April. Sales fell 0.2 percent, the biggest decline since July 2016, after being unchanged in April.
Inventories are a key component of gross domestic product.
At May’s sales pace, it would take 1.38 months for businesses to clear shelves, up from 1.37 months in April.
Reporting by Lucia Mutikani; Editing by Andrea Ricci