Durable goods inventory-sales ratio hits highest since 2016
Slower accumulation dragged down latest GDP growth figure
American companies still have work to do in slimming inventories even after making some headway in the second quarter, indicating that further efforts to trim bloated stockpiles could weigh on the economy.
The value of unsold durable goods at U.S. factories increased 0.4% in July from the prior month — the 11th straight rise — after a 0.3% advance a month earlier, Commerce Department data showed Monday.
The report also showed shipments of non-defense capital goods excluding aircraft, a proxy for business spending on equipment used to calculate quarterly gross domestic product, slumped by the most since October 2016. Inventories of all durable goods would last 1.68 months, the longest since November 2016. Read More…