WASHINGTON - Business inventories in the U.S. rose 0.4% in July after no change in the prior month, the Commerce Department said Friday. Sales rose 0.3% in the month.
The ratio of inventories to sales, meanwhile, was flat at 1.40. That's how many months it would take to sell all the inventory on hand. One year ago, the inventory-to-sales ratio was 1.35. An increase in inventories adds to gross domestic product while a decrease subtracts from it.
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