February’s gain in the GDP component, which was in line with economists’ expectations, followed a 0.4% advance in January.
The strength of domestic demand is prompting businesses to increase their stock of goods.
The gain in inventories followed a 0.1% drop in March and was fueled by a 0.5% increase in retail inventories after a 0.7% decline the previous month.
The decline was greatest at retailers and wholesalers, said the U.S. Commerce Department.
