Business Inventories Unchanged, Slightly Low Compared To Sales

Business inventories were unchanged in June and were slightly on the low side compared to business sales which edged 0.1 percent higher in the month. The inventory-to-sales ratio edged down to 1.39 from 1.40 in May. Low inventories may be a negative for inventory change in the GDP report but they are a strong positive for business health and the outlook for future production and employment growth.