Rise in business inventories indicates strength

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Monday, Aug. 14, 2000 | 11:28 a.m.

WASHINGTON -- U.S. inventories grew more than expected in June as businesses worked to keep pace with increasing sales, government figures showed today.

Inventories rose 0.9 percent in June, matching May's increase, which was the largest since November, the Commerce Department said. The inventory gain, coupled with a 0.9 percent June increase in business sales, suggests the economy retained its momentum entering the third quarter.

U.S. Treasury securities fell on expectations the economy's resilience -- in the face of six interest-rate increases from the Federal Reserve since June 1999 -- may lead to additional Fed moves before the end of the year. Central bankers next meet on Aug. 22, followed by meetings in October, November and December.