Company Inventories Up By 1.1%

The Commerce Department said businesses’ supplies of unsold goods in warehouses and stock rooms rose by 1.1% in July, the biggest increase since July 2004, Manufacturing.Net reported. Economists were expecting only a 0.5% gain.

The increase in inventories came as business sales rose by a smaller-than-expected 0.5% in July, down from a 1.7% rise in June. Economists expected a 1.4% gain for July. Businesses have been struggling to get a firm handle on customer demand, the department said. Consumers have begun pulling back amid rising unemployment, shrinking paychecks, and fallout from the housing and credit crises.