Business stockpiles and sales both rose in June

Businesses added to their stockpiles for an 18th consecutive month in June, but the increase was the smallest in more than a year. Companies may be less confident amid growing fears of a new recession. Business inventories rose 0.3% in June, the weakest gain since May 2010, the Commerce Department says. Total business sales rose 0.4% after a 0.1% drop in May. The rebound in sales should help to bolster shaky business sentiment and spur further inventory restocking in coming months. Overall economic growth slowed to just 0.8% in the first six months of this year, the worst growth since the recession officially ended in June 2009. A drop in inventory rebuilding would further hamper growth and put the country at risk of falling back into a recession. The June inventory increase pushed total stockpiles to $1.52 trillion, up about 15% from the recent low of $1.32 trillion reached in September 2009. Wholesalers increased their stockpiles 0.6%. Manufacturers and retailers both increased their stocks 0.2%.