US business inventories grow more quickly than expected in April

Inventories held by US businesses grew by 0.4% month-on-month in March to reach $1.82trn, according to the US Department of Commerce.

Economists had been expecting a rise of 0.2%.

Business sales meanwhile rose 0.3% over the month to hit $1.29trn.

A ratio of inventory-to-sales came in at 1.41 upon seasonal adjustment, the same as last month, against a reading of 1.37 one year ago.

Product stockpiles fell by 0.3% at retailers to $393.9bn but grew by 0.5% at manufacturers and by 0.7% at merchant wholesalers.