Inventories Rise: Business inventories rose 0.7% in...

Inventories Rise: Business inventories rose 0.7% in May as sales growth stagnated, the Commerce Department said, leading some analysts to predict further production cutbacks during the rest of the year. When not accompanied by increases in sales, rising inventories often prompt manufacturers to decrease production until stockpiled goods are sold, resulting in a loss of jobs. The department said inventories held on shelves and back lots climbed to a seasonally adjusted $776.9 billion in May after a 0.8% rise in April. The pace of business sales, on the other hand, rose a minuscule 0.02% to a seasonally adjusted $517.9 billion. Sales had risen 2% in April after holding steady in March.