⁍ U.S. business inventories rose 0.3% in August after edging up 0.1% in July.

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⁍ Retail inventories increased 0.4% in August instead of 0.8% as estimated last month.

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⁍ Business sales increased 0.6% in August after surging 3.4% in July.

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– US business inventories increased for a second straight month in August, adding to evidence the economy is regaining some momentum. Inventories rose 0.3% in August, the Commerce Department said today, after rising 0.1% in July. Economists expected business stocks to rise 0.4%. Retail inventories increased 0.4% in August instead of 0.8% as estimated in an advance report published last month. That followed a 1.2% rebound in July. Motor vehicle inventories rose 0.3% rather than 0.6% as previously reported. Retail inventories excluding autos, which go into the calculation of GDP, increased 0.5% instead of 0.9% as estimated last month. An inventory drawdown contributed to GDP declining at a record 31.4% annualized rate in the second quarter. Inventories subtracted 3.5 percentage points from GDP, the most since the first quarter of 1988. They have been a drag on GDP for five straight quarters. Businesses are rebuilding inventories with imports, which led to the goods trade deficit surging to a record high in August. With most of the imports going to replenish inventories, the wider goods trade deficit will likely make a small dent in GDP growth in the third quarter. Trade contributed to GDP growth in the last three quarters. At August’s sales pace, it would take 1.32 months for businesses to clear shelves, down from 1.33 months in July.