U.S. business inventories climb 0.5% in May

U.S. business inventories rose 0.5% in May, the government said Friday. Economists polled by The Wall Street Journal had forecast a 0.5% increase. Sales fell 0.3% in the month. An increase in inventories adds to gross domestic product and is usually a sign of an expanding economy. The ratio of inventories to sales, meanwhile, rose to 1.26 from 1.25. That's how many months it would take to sell all the inventory on hand. Inventories soared early in the pandemic as sales slumped, but now companies can't keep enough inventory in stock. Sales are strong, but shortages of supplies and labor are holding back production.

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California approves first state-funded guaranteed income plan

California lawmakers on Thursday approved the first state-funded guaranteed income plan in the U.S., providing $35 million for monthly cash payments to qualifying pregnant people and young adults who recently left foster care with no restrictions on how they spend it.

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