U.S. business inventories rose by 0.3 percent in February, the fastest pace since September, the Commerce Department reported Monday.

The gain in inventories held on shelves and backlots by businesses followed an increase of 0.2 percent in January. Compared with the same month a year ago, business inventories were up 5.9 percent in February.

The 0.3 percent gain in February was led by a 0.5 percent increase in stockpiles held by wholesalers. Wholesalers' inventories gained by 0.6 percent in January.

Retailers' inventories rose by 0.3 percent, following a 0.1 percent gain in the previous month.

Manufacturers' inventories were flat for the second consecutive month in February.

For February, U.S. business sales were up 0.4 percent, rebounding from a 0.9 percent decline in the previous month.

The total business inventories-to-sales ratio at the end of February was 1.29, the same as in January. The ratio is a measure of how long it would take to deplete stocks at the current sales pace.

The reading for February business inventories was in line with economists' expectations.

Rising business inventories are seen as a sign of confidence in future demand or as a result of an unexpected decline in sales.

Source: Xinhua