Business inventories in the U.S. rose a mild 0.2% in April after falling by the similar amount in March. Sales in the month increased 0.1%, the government said Thursday. The inventory-to-sales ratio was unchanged at 1.40 months. A year ago the ratio stood at a lower 1.31. 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 that demand has softened and businesses have reduced production to avoid excess inventories. Higher inventories add to GDP and lower inventories are a negative.
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