Retail inventories are up 0.3 percent in June from May following an unrevised 0.3 percent rise in May with motor vehicles and parts driving the increases.

The rise in June and May reflect gains at motor vehicles and parts dealers which show an increase of 0.9 percent on the month in June from May and an increase of 0.7 percent in May from April. Total retail inventories excluding motor vehicles and parts are flat in June from May and up 0.1 percent in May from April.

Retail inventories measure the monthly dollar value of inventories held by retailers. The advance report is released late in the month for the following month and is part of the Monthly Advance Economic Indicators report (which also includes data on wholesale inventories and international trade in goods). Final monthly data for retail inventories are released about two weeks later with the Business Sales and Inventories report.

Investors need to monitor the economy closely because it usually dictates how various types of investments will perform. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers a slower rate of growth that won't lead to inflationary pressures. Retail inventory data give investors a chance to look below the surface of the visible economy, especially for unwanted build. If inventories are growing too fast relative to economic growth, then both production and employment will probably have to slow while those inventories are worked down.