10.09.201013:28:00UTC+00Wholesale Inventories Rise Sharply In July

US wholesale inventories rose the most in two years in July, a sign that merchants expect consumer demand to pick up.

Inventories rose 1.3% to $405.0 billion in July from the previous months upwardly revised levels, according to a report from the Commerce Department released Friday. Economists were expecting an increase of only 0.4%.

Inventories of farm product raw materials were up 11.6% from last month and inventories of apparel were up 4.1 percent.

Overall, stockpiles were up 2.5% compared to July of last year.

The monthly rise in inventories outpaced a modest increase in sales by wholesalers.

Wholesale sales were $350.1 billion, up 0.6 percent from the revised June level. Since July 2009, wholesale sales have climbed by 2.5%.

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