Mubasher: US business inventories surprisingly recorded no change in August, as retail stockpiles were weaker than earlier estimated, indicating that inventory investment could weigh on economic growth in the third quarter.

US business inventories, which represent a major component of gross domestic product (GDP), remained unchanged at $2.042 trillion during August, on a seasonally adjusted basis.

This came after inventories expanded by 0.3% in July, according to the revised estimates by the US Commerce Department’s Census Bureau.

Meanwhile, analysts surveyed by Reuters expected a 0.2% expansion.

Retail inventories fell by 0.1% in August, compared to an earlier estimate showing no change, and reversing a gain of 0.7% in the preceding month.

The collective value of distributive trade sales and manufacturers’ shipments increased by 0.2% to $1.463 trillion.

The ratio of total inventories to sales in August was 1.40, stabilising from the preceding month, while it was higher than the ratio of 1.35 in the same month last year.

Inventory accumulation has been losing pace since the first quarter of this year, while the overhang prompted businesses to place fewer orders with manufacturers, which in turn dealt a blow to factory business.

By 2:23 pm GMT, the dollar index, which gauges the greenback against six major peers, inched down by 0.00% to 98.1950.