Business Inventories Up

The Associated Press reports that U.S. Business inventories grew by 0.5% in April, more than double the 0.2% rise in March, and the best showing since inventories rose by 1% in January.

The increase in stockpiles held on shelves and back lots was significantly higher than the 0.3% gain that analysts had been expecting and will provide a boost to economic activity in the April-June quarter the Labor Department said. The overall economy, as measured by the gross domestic product, grew at an annual rate of 0.9% in the first three months of the year.