News Summary: Inventories up in May but sales drop

AP News
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Posted: Jul 16, 2012 6:33 PM

INVENTORIES ADVANCE: U.S. companies added to their stockpiles in May, pushing inventories up 0.3 percent.

SALES DOWN: But business sales fell for a second straight month, dropping 0.1 percent in May and raising concerns that the economy has slowed.

OUTLOOK: When businesses step up restocking, they order more goods, boosting factory production and the overall economy. The concern is that businesses could cut back on inventory building if their sales falter.