U.S. wholesale inventories unchanged in May

Wholesale inventories in the U.S. were unchanged in May following a decline in the prior month, indicating businesses are producing or stockpiling fewer goods due to an uncertain economy. Sales in the month were down 0.2%, the government said Monday. 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 tis year suggest it’s taking longer for companies to sell their goods, a sign of a slowing economy or an excess of unsold products. Businesses are likely to respond by further reducing inventories.