U.S. wholesale inventories post largest gain in three months

WASHINGTON (Reuters) - U.S. wholesale inventories rose more than expected in September, suggesting the

third-quarter economic growth estimate could be revised higher.

The Commerce Department said on Tuesday wholesale inventories increased 0.5 percent as a rise in automobiles, furniture, farm products and apparel offset a decline in machinery, petroleum and a range of other goods.

That was the largest gain since June. Wholesale stocks were revised to show a 0.3 percent gain in August instead of the previously reported 0.1 percent increase.

Economists polled by Reuters had forecast wholesale inventories unchanged in September.

Inventories are a key component of gross domestic product changes. The component of wholesale inventories that goes into the calculation of GDP - wholesale stocks excluding autos - increased 0.5 percent. That is more than the government

estimated in its advance GDP estimate published last month.

The government estimated that inventories sliced off 1.44 percentage points from GDP growth in the third quarter, leaving output expanding at a 1.5 percent annual rate.

Sales at wholesalers rose 0.5 percent in September after declining 0.9 percent in August. Sales had been sluggish since last August, in part due to the negative impact of lower oil prices on the value of petroleum products sales

At September's sales pace it would take 1.31 months to clear shelves, unchanged from August, a still high level that suggests businesses will be in no rush to restock warehouses.

((Reporting by Lucia Mutikani; Editing by Andrea Ricci))

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