US wholesale inventories revised lower in July

U.S. wholesale inventories increased a bit less than initially thought in July, suggesting businesses were not rushing to rebuild inventory after stocks were depleted in the second quarter.

Stocks at wholesalers edged up 0.1%, instead of rising 0.2% as estimated last month, the Commerce Department's Census Bureau said on Wednesday. Economists polled by Reuters had expected last month's estimate would be unrevised.

Inventories, a key part of gross domestic product, gained 0.2% in June. They advanced 1.3% on a year-over-year basis in July. Wholesale stocks of motor vehicles dropped 1.6%. But stocks of apparel surged 1.9%, while those of prescription medication increased 1.8%. Grocery inventories increased 2.0%.

Inventories decreased at a $32.9 billion annualized rate in the second quarter, subtracting 3.29 percentage points from GDP. That was, however, more than offset by a record 4.95 percentage point contribution from a smaller trade deficit.

The economy grew at a 3.3% annualized rate last quarter after contracting at a 0.5% pace in the first quarter.

Sales at wholesalers jumped 1.4% in July after rising 0.7% in June. At July's sales pace it would take wholesalers 1.28 months to clear shelves, down from 1.29 months in June.

(Reporting by Lucia Mutikani; Editing by Hugh Lawson)