Wholesale inventories in the U.S. fell 0.5% in June following a similarly large decline in the prior month, a sign that businesses are stockpiling fewer goods due to an uncertain outlook for the economy. Sales in the month sank 0.7%, the government said Tuesday. The inventory-to-sales ratio rose to 1.41 months from 1.40 months. A year ago the ratio stood at a much lower 1.30. The ratio reflects how long it would take a company to sell all the goods sitting on warehouse shelves. The higher readings this year suggest it’s taking longer for companies to sell their products, which is what happens when the economy slows or sales taper off. Businesses are likely to respond by reducing production unless sales rebound.
